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Qualcomm pays Broadcom $891 million to end litigation

by Scott Bicheno on 27 April 2009, 11:29

Tags: Broadcom (NASDAQ:BRCM), Qualcomm (NASDAQ:QCOM)

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It sometimes seems like the semiconductor industry must employ as many lawyers as boffins, such is the ubiquity of patent and license litigation.

For once, one of these seems to have been conclusively resolved, with the dismissal of all litigation, in both directions, between wireless technology companies Qualcomm and Broadcom.

The resolution involves a multi-year patent agreement between the two and the payment by Qualcomm, over four years, of $891 million to Broadcom. It wasn't specified what the payment was for and the terms of the agreement don't affect Qualcomm's 3G and 4G licensing revenue models.

"I am pleased that we have achieved this important settlement. At a time when the wireless industry should be focused on moving forward, the agreement removes uncertainty for Qualcomm and its customers," said Dr. Paul Jacobs, chairman and CEO of Qualcomm.

"We have set aside our differences while addressing the needs of our customers, our shareholders and the industry. In addition, the companies have worked together to achieve their mutual goals of improving the competitive dynamics of the industry," said Scott McGregor, president and CEO of Broadcom.

The two companies had been locked in a spiral of tit-for-tat patent litigations for a while and it does appear to be beneficial to the industry as a whole that things have been resolved. Now wouldn't it be nice if Intel could get its lawyers to chill out a bit too?

 



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Thats a monster settlement :o