Friday, September 14, 2007
Qualcomm Inc. said Wednesday (Sept. 12) an appellate court had granted a stay on a U.S. trade agency ban on imports by third parties of some mobile phones using chips that are at the center of a patent dispute.
The wireless chip supplier said the U.S. Court of Appeals for the Federal Circuit's stay pending appeal would allow third parties such as Motorola Inc, Samsung Electronics and LG Electronics MobileComm U.S.A. Inc to import certain handsets into the United States.
The news sent shares of mobile phone makers such as LG Electronics Inc higher in Seoul, helping the benchmark Korea Composite Stock Price Index climb 0.95 percent by 0145 GMT.
But the court declined to grant a stay with respect to Qualcomm's own imports, the company said.
"We are pleased that Qualcomm will not be permitted to continue its infringement of our patent while the appeal proceeds, either as to its original design or its purported redesign," Broadcom said in a release.
The International Trade Commission had imposed a ban on the imports after finding that Qualcomm had infringed a patent held by Broadcom Corp. Last month, the Bush administration said after a 60-day review that it would uphold the ITC ban.
The patent in question extends battery life in phones when they are outside the range of their network.
Qualcomm does not itself import the chips found to infringe Broadcom's patents, it said.
The stay applies to all third parties that filed motions seeking a stay of the ITC's June 7 order, Qualcomm said. Those parties also include Kyocera Wireless Corp, Sanyo Fisher Co, T-Mobile USA Inc and AT&T Mobility LLC.
Qualcomm said it would continue to pursue the appeal of the ITC's order and seek a reversal of the infringement finding.
The ITC is an independent federal agency that determines whether imported products infringe U.S. patents, trademarks or copyrights.
Broadcom filed the complaint in the ITC against Qualcomm, Qualcomm said.
Qualcomm and the third parties argued that the ITC did not have the authority to issue an order excluding products imported by persons other than Qualcomm, it said.
"We are pleased that the Court of Appeals recognized the undeserved harm to parties who were not named in the lawsuit," Qualcomm legal counsel Alex Rogers said.
Rogers added that Qualcomm customers would now be able to introduce new products in the United States during the appeals process.
By: DocMemory
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