Broadcom Uses Patent Loophole To Ban Qualcomm-Powered Phones

from the two-shots dept

Fri, Jun 8th 2007 8:13am — Mike Masnick

Just last week we noted that patent holders were increasingly getting two cracks at companies they felt were infringing by going to the US International Trade Commission and asking them to ban the import of products that infringe on their patents. The US ITC has no obligation (as the courts do) to look at the obviousness of the patents or whether or not the patents are valid. They can just ban the importation of the patent entirely. Effectively it gives companies two separate routes to beat up on those they accuse of infringing -- with this loophole method having even less recourse than the courts. So, it should come as no surprise that while Qualcomm and Broadcom have been fighting it out in the courts over patent infringement, the US ITC has now banned the import of any new models of phones using Qualcomm's 3G chips. In other words, Qualcomm is going to be forced to settle. This is seen as a "compromise" because the ITC resisted banning existing phones with 3G technology -- but all that really means is that Qualcomm has a slightly longer window of time to reach a settlement with Broadcom.

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13 Comments

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Anonymous Coward, 8 Jun 2007 @ 9:23am

So wait. If I am currently working overseas in the military and buy a cell phone, can I bring it back to the US when I come home?

Could I buy a bunch?

Is this what I am really fighting for?
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- Jacob Buck, 8 Jun 2007 @ 10:57am
  
  Re:
  You're obviously not fighting for anything if your biggest worry is bringing a cell phone home loser.
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angry dude, 8 Jun 2007 @ 9:35am

Relax, dude

You can buy a bunch of those phones and bring them back..
You can even sell them all on EBay
Nobody will give a shit
Just don't open a store selling those phones here
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Joe Smith, 8 Jun 2007 @ 10:46am

damages
And if Qualcomm wins the patent litigation and the patents turn out never to have been valid who is going to reach into their pockets and pay Qualcomm and its shareholders the billions of dollars this may cost them - the Judges at the ITC perhaps?
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Bacob Juck, 8 Jun 2007 @ 12:24pm

To Jacob Buck
Dudes like that guy who volunteer for the sh*t can bring back any phone they want, as well as worry about whatever they want, no matter how small or insignificant to you. So, how about getting on Deez Nutz, Buck? *humpa* *humpa*
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Rick, 8 Jun 2007 @ 12:49pm

Free market? HA
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Wolfman-K, 8 Jun 2007 @ 12:53pm

Qualcomm ban
Wow, this is a hell of a loophole. Qualcomm has no recourse, and this is going to hurt a whole lot of US companies, Verizon, AT&T, Sprint... not to mention to the wholesalers, retailers, kids summer jobs.

Man Broadcom, think before you act. Are you this selfish, or just stupid.
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- Broadcom Rep, 8 Jun 2007 @ 2:03pm
  
  Re: Qualcomm ban
  A little of Column A, A little of Column B. I want money, but I didn't care to think how this might effect anything. After all, if the US Gov. is OK with it, than why is it a problem?
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Shun, 8 Jun 2007 @ 3:17pm

ITC has no legitimacy?
It's not Broadcom's fault that the ITC exists. They are taking advantage of an existing regulator to attack a competitor. Also, they are using the ruling to put themselves in a better bargaining position vis-a-vis licensing their tech to Qualcomm. In the end, it is in neither companies' interest to deadlock. Qualcomm needs to ship chips, and Broadcom wants royalties. If the Patent Office rules that the tech is property of Broadcom, shouldn't they get their cut? If you feel that Broadcom doesn't deserve it, then I challenge you to create for free. I am sure you are noble enough to understand that getting paid to invent is petty and greedy. Ideas are the property of all of humankind, etc. I and my free-rider colleagues thank you.
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anon, 9 Jun 2007 @ 10:04am

it should be regulated
It's pretty sad that they have loopholes like this. It should be regulated by the patent office just like it has always been. I hate to see technology get hit by ghetto loop holes that hurt companies. In the end if Qualcomm owes them money so be it but patch up this watery hole and move on without the money rapage.
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Cleverboy, 10 Jun 2007 @ 2:16am

So, I guess Apple wins, eh?
Well, regarding the iPhone, I suppose this would be the definition of "hollow victory" if all of its rival network CDMA-based 3G "new releases" get clotheslined at the starting gate. I doubt Apple will complain regardless.
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R Kent, 11 Jun 2007 @ 10:55am

Who wrote this article? Qualcomm?
They forgot to mention that the courts already ruled that the patent is valid and that qualcomm infringed. They forget to say that Broadcom also won a case in Santa Ana that found Qualcomm WILLFULL infringement on three Broadcom
patents (Broadcom will also nailed them on these patents shortly). Also, they forget to mention that qualcomm illegally kept 35,000 e-mails in their Santa Ana court loss against Broadcom and now will have to pay Broadcom legal costs.
Finally, they forget to mention that qualcomm is also in court for illegally manipulating the standard setting organizations. They fill the standard setting organizations with people on their payroll, but don't disclose it.
Qualcomm's royalties as we know it are history.
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3G cell phone user, 23 Jun 2007 @ 3:36pm

Want new cell phones
It seems that the biggest loser is 3G cell phone users. If we have no new cell phones to use in future, can Broadcom's patent produce 3G cell phones for us? I don't care if Broadcom is using this lawsuit for unfair competition. I just want to have new cell phones when my current cell phone contract ends next year. B company, please don't be selfish.
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