By Tim Conneally, Betanews
The Hatfields and McCoys of the wireless chipmaking industry, Qualcomm and Broadcom, today announced that they had laid down their long legal feud and entered into a multi-year patent agreement.
Since 2006, the two companies have been bouncing in and out of U.S. Courts and U.S. International Trade Commission hearings over patent infringement and licensing of WCDMA technology.
In the settlement, Qualcomm will pay Broadcom $891 million in cash over the next four years; $200 million of which will be paid before the end of June. Additionally, both companies agree to not sue each other for their respective integrated circuit products, and Qualcomm's existing licensing revenue model for 3G and and 4G technologies will remain unchanged. All claims within the International Trade Commission, U.S District Court, European Commission, and South Korean FTC have been unequivocally dropped.
In a statement this evening, Scott A. McGregor, president and CEO of Broadcom 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."
Copyright Betanews, Inc. 2009