» Qualcomm and Verizon Wireless Challenge ITC Chip Import InjunctionTelecommunications Industry News

Telecom News Editorials Reports Glossary

Qualcomm and Verizon Wireless Challenge ITC Chip Import Injunction

6:05 am on June 9, 2007 | Category: Business, Cellular, Law, Wireless Technology

America’s International Trade Commission has banned the import of new cellular phones containing Qualcomm semiconductors, due to a recent court ruling that some of the San Diego-based chipmaker’s products infringe on patents owned by rival, Broadcom Corp.

Qualcomm’s wireless components are present in a large percentage of the handsets offered by Verizon Wireless, AT&T Wireless, and Sprint Nextel, meaning that restrictions on new semiconductors could seriously hamper technological innovation in the U.S. wireless sector.

Qualcomm CEO, Paul Jacobs, is asking U.S. president George W. Bush to veto the decision, saying that it will damage not just his own company, but the industry as a whole.

“We believe the commission has overstepped its statutory boundaries and has not afforded due process to manufacturers and operators,” Jacobs stated.

A federal jury already awarded Broadcom with $19.6 million in patent infringement damages.

America’s second largest wireless carrier, Verizon Wireless, is also appealing to the White House for a reversal of the import injunction.

“This is a bad order for the industry, and it’s going to freeze innovation,” commented Verizon spokeswoman Nancy Stark.

Telecommunications Industry News