Broadcom goes on the offensive against Qualcomm for "patent misuse"

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Broadcom goes on the offensive against Qualcomm for "patent misuse"

By CAROLINE GABRIEL

Published: 9 October, 2008

READ MORE: Qualcomm

When a range of wireless companies, led by Nokia and Broadcom, went on a crusade against Qualcomm a couple of years ago, sparking a huge series of lawsuits, they were focusing on the CDMA giant's whole business model as well as specific disputes. Nokia has since settled its differences with Qualcomm, and Broadcom has drilled down to detailed patent debates - until now, when it has decided to widen its aim again and go after its rival's commercial practises.

Broadcom has filed yet another complaint, this time in the US District Court for the Southern District of California in San Diego, seeking a declaratory judgment against Qualcomm because that firm's sales and licensing practices "amount to patent misuse". In particular, Broadcom alleges that its enemy's use of "exhausted" patents (ones whose fees have already been paid by another party) enables it to double dip on royalties. That resulted in "a financial windfall" for Qualcomm and "brought harm" to the industry and consumers, according to Broadcom's complaint.

A request for a "declaratory judgment" essentially asks a court to clarify existing law and doesn't seek damages, but such a ruling might compel a defendant to modify its practises. Broadcom apparently based its request on a recent US Supreme Court ruling on the scope of the patent exhaustion doctrine in a lawsuit between Quanta and LG Electronics.

Several patent cases between the two companies are still pending. These include the high profile ITC decision last year that banned sales in the US of phones that contain Qualcomm chips that infringe on Broadcom patents, which is still under appeal at the Federal Circuit; another case that was stayed by the Santa Ana court, which Broadcom may take to trial; as well as antitrust and litigation misconduct cases that Broadcom has filed against Qualcomm.