-Agreement Ends Litigation Between the Companies Worldwide-
SAN DIEGO and Irvine, Calif., April 26 /PRNewswire-FirstCall/ -- Qualcomm
Incorporated (Nasdaq: QCOM) and Broadcom Corporation (Nasdaq: BRCM) today
announced that they have entered into a settlement and multi-year patent
agreement. The agreement will result in the dismissal with prejudice of all
litigation between the companies, including all patent infringement claims in
the International Trade Commission and U.S. District Court in Santa Ana, as
well as the withdrawal by Broadcom of its complaints to the European
Commission and the Korea Fair Trade Commission. Under the agreement, the
companies have granted certain rights to each other under their respective
patent portfolios. Qualcomm will pay Broadcom $891 million over a four-year
period. The terms of this agreement will not result in any change to
Qualcomm's 3G (e.g., CDMA2000(R), WCDMA and TD-SCDMA) and 4G (e.g., LTE and
WiMAX) licensing revenue model.
The terms of the agreement include, among other elements:
-- Broadcom and Qualcomm agree not to assert patents against each other
for their respective integrated circuit products and certain other
products and services;
-- Broadcom agrees not to assert its patents against Qualcomm's customers
for Qualcomm's integrated circuit products incorporated into cellular
-- Qualcomm's customers do not receive rights to any of Broadcom's
with respect to Qualcomm integrated circuit products incorporated into
non-cellular products and equipment;
-- Qualcomm agrees not to assert its patents against Broadcom's customers
for Broadcom's integrated circuit products incorporated in
-- Broadcom customers do not receive rights to any of Qualcomm's patents
with respect to Broadcom integrated circuit products incorporated into
cellular products and equipment;
-- Qualcomm will pay Broadcom $891 million in cash over a period of four
years, of which $200 million will be paid in the quarter ending June
30, 2009. The agreement does not provide for any other scheduled
payments between the parties.
Other terms of the agreement are confidential.
"We believe that this resolution is positive for both Qualcomm and
Broadcom, our customers, our partners and the overall industry," said Dr. Paul
E. Jacobs, chairman and CEO of Qualcomm, and Scott A. McGregor, president and
CEO of Broadcom.
"The settlement will allow us to direct our full attention and resources
to continuing to innovate, improving our competitive position in this economic
downturn, and growing demand for wireless products and services," Jacobs said.
"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."
"Today's settlement allows both companies to move on with their business
and compete in the semiconductor sector as two of its innovation leaders,"
McGregor said. "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."
Qualcomm Incorporated (Nasdaq: QCOM) is a leader in developing and
delivering innovative digital wireless communications products and services
based on CDMA and other advanced technologies. Headquartered in San Diego,
Calif., Qualcomm is included in the S&P 100 Index, the S&P 500 Index and is a
2009 FORTUNE 500(R) company. For more information, please visit
Broadcom Corporation is a major technology innovator and global leader in
semiconductors for wired and wireless communications. Broadcom(R) products
enable the delivery of voice, video, data and multimedia to and throughout the
home, the office and the mobile environment. We provide the industry's
broadest portfolio of state-of-the-art system-on-a-chip and software solutions
to manufacturers of computing and networking equipment, digital entertainment
and broadband access products, and mobile devices. These solutions support
our core mission: Connecting everything(R).
Broadcom is one of the world's largest fabless semiconductor companies,
with 2008 revenue of $4.66 billion, holds over 3,300 U.S. and over 1,300
foreign patents, and has more than 7,500 additional pending patent
applications, and one of the broadest intellectual property portfolios
addressing both wired and wireless transmission of voice, video, data and
Broadcom is a FORTUNE 500(R) company headquartered in Irvine, Calif., and
has offices and research facilities in North America, Asia and Europe.
Broadcom may be contacted at +1.949.926.5000 or at www.broadcom.com.
Cautions regarding Forward Looking Statements:
All statements included or incorporated by reference in this release,
other than statements or characterizations of historical fact, are
forward-looking statements. These forward-looking statements are based on
Qualcomm's and Broadcom's current expectations, estimates and projections
about their respective businesses, respective management's beliefs, and
certain assumptions made by Qualcomm and Broadcom, all of which are subject to
change. Forward-looking statements can often be identified by words such as
"anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks,"
"estimates," "may," "will," "should," "would," "could," "potential,"
"continue," "ongoing," similar expressions, and variations or negatives of
these words. Examples of such forward-looking statements include, but are not
limited to, references to the anticipated benefits to Qualcomm, Broadcom and
other third parties related to the settlement and references to the effect of
the agreement on Qualcomm's 3G and 4G licensing revenue model. These
forward-looking statements are not guarantees of future results and are
subject to risks, uncertainties and assumptions that could cause actual
results to differ materially and adversely from those expressed in any
The respective Annual Reports on Form 10-K, subsequent Quarterly Reports
on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and
Exchange Commission filings, of Qualcomm and Broadcom discuss important risk
factors that could affect their respective businesses, results of operations
and financial condition. The forward-looking statements in this release speak
only as of this date. Neither Qualcomm nor Broadcom undertakes any obligation
to revise or update publicly any forward-looking statement for any reason,
except as required by law. All statements made by or concerning Qualcomm or
Broadcom, respectively, are made solely by such applicable party and such
party is solely responsible for the content of such statements.
Qualcomm is a registered trademark of Qualcomm Incorporated. CDMA2000 is
a registered trademark of the Telecommunications Industry Association (TIA
USA). Broadcom(R), the pulse logo, Connecting everything(R), and the
Connecting everything logo are among the trademarks of Broadcom Corporation
and/or its affiliates in the United States, certain other countries and/or the
EU. All other trademarks are the property of their respective owners.
Christine Trimble, Corporate Communications
John Gilbert, Investor Relations
Broadcom Business Press Contact
Vice President, Global Media Relations
Broadcom Financial Analyst Contact
T. Peter Andrew
Vice President, Corporate Communications
Phone: 1- 949-926-5663
For further information:
For further information: Christine Trimble, Corporate Communications,
+1-858-845-5959, firstname.lastname@example.org, or John Gilbert, Investor Relations,
+1-858-658-4813, email@example.com, both of Qualcomm Incorporated; or Broadcom
Business Press Contact, Bill Blanning, Vice President, Global Media Relations,
+1-949-926-5555, firstname.lastname@example.org, or Broadcom Financial Analyst Contact,
T. Peter Andrew, Vice President, Corporate Communications, +1-949-926-5663,
email@example.com Web Site: http://www.qualcomm.com