BRCM: Dispute Remains as to Qualcomm's (QCOM) Anticompetitive Conduct

Broadcom Corporation (Nasdaq: BRCM) announced today that it plans to continue to pursue U.S. federal antitrust claims against Qualcomm Incorporated in response to the dismissal without prejudice of Broadcom's federal antitrust lawsuit by a U.S. District Court in New Jersey.

"Qualcomm should take little comfort in the court's decision," said David A. Dull, Broadcom's Sr. Vice President, Business Affairs, and General Counsel. "The decision does not find that Qualcomm's alleged misconduct was lawful or that Qualcomm honored its promises to standards setting bodies. Rather, Judge Mary Cooper simply held that Qualcomm's alleged abuse does not give rise to federal antitrust liability."

The judge expressly granted Broadcom the right to file an amended complaint for Qualcomm's alleged misconduct.

Broadcom believes Judge Cooper's decision is directly at odds with established precedent and, particularly, the Federal Trade Commission's recent decision in the Rambus Inc. case. Broadcom is evaluating its next legal steps in the New Jersey action, which could include moving for reconsideration by the court, appealing the decision to the U.S. Third Circuit Court of Appeals, or filing an amended complaint.

The company has also filed a complaint on similar grounds with the European Commission, and expects a decision later this year as to whether the EC will launch a formal investigation into Qualcomm's anticompetitive practices.

Judge Cooper's decision has no affect on Broadcom's patent litigation against Qualcomm. In all, Broadcom has asserted that Qualcomm chips infringe eighteen U.S. patents. A decision from the U.S. International Trade Commission on whether Qualcomm infringes three of those patents is expected October 10.