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Qualcomm agrees to pay $891 million to Broadcom

Written by James Delahunty (Google+) @ 27 Apr 2009 13:04 User comments (2)

Qualcomm agrees to pay $891 million to Broadcom Qualcomm and Broadcom have come to an agreement that will end years of litigation that spanned across three continents. Over a four year period, Qualcomm will pay a whopping $891 million to mobile chip rival Broadcom, after losing several patent infringement cases against the company. It will make a first payment of $200 million by the end of June this year.
Qualcomm rescheduled its quarterly earnings call after announcing that it was in advanced settlement talks with Broadcom, whom it has been fighting a legal battle with since 2005. "It's clearly costing Qualcomm a lot but it's best for both companies to move on." said Charter Equity Research analyst Ed Snyder. "It's a win for Broadcom."

Analysts expect Qualcomm will report quarterly revenue of $2.35 billion today. The settlement will lead to the dismissal of all litigation between the companies, including patent infringement claims Broadcom brought against Qualcomm at the International Trade Commission.

Broadcom said it will also withdraw its complaints against Qualcomm to the European Commission and the Korea Fair Trade Commission as part of the deal.

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2 user comments

127.4.2009 17:50

Broadcom deserves nothing! Scumbags who will not allow a non-proprietary driver for their Wifi cards on Linux or any other OS.

24.5.2009 8:21

One may wish for whatever but my observation of Broadcom popularity is overwhelming.

2 of India's largest ISPs (having > 85% market share) VSNL and BSNL supply only Chinese made Broadcom chipset based ADSL2 modem + router + 100 mbps 4 port Ethernet + 802.11G wi-fi switch for about US$ 35/= including 1 year replacement warranty. I have yet to see a single one fail within my client base in past 3 yeras in 24/7 10C to 45C ambient operating environment.

BTW VSNL owns almost 50% or sub-sea cable network capacity across the world!

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