Broadcom Wins Federal Antitrust Appeal Against Qualcomm

(Business News & Technology News, 5 Sep 2007)

Broadcom Corp. has announced that the U.S. Court of Appeals for the Third Circuit today reversed a lower court's dismissal of antitrust claims Broadcom brought against Qualcomm Inc. in U.S. District Court in New Jersey, allowing the antitrust case against Qualcomm to go forward.

The three-judge appeals court noted that the case presents "important questions regarding whether a patent holder's deceptive conduct before a private standards-determining organization may be condemned under the antitrust laws." According to today's opinion, the answer is "yes," as the court unanimously held that Broadcom can pursue its claims for monopolization and attempted monopolization by Qualcomm. Ordering that the case proceed in the U.S. District Court for New Jersey, the court found that Broadcom had adequately alleged that "Qualcomm possessed monopoly power in the relevant market" and that "Qualcomm obtained and maintained its market power willfully, and not as a consequence of a superior product, business acumen, or historic accident."

"We are pleased that we will get our day in court and will have the opportunity to show how Qualcomm's conduct violates our nation's antitrust laws," said David A. Dull, Broadcom's Senior Vice President, Business Affairs and General Counsel. "We have already seen a finding of standards abuse against Qualcomm in a patent case in San Diego federal court, and are optimistic that we will prevail in New Jersey as well. We plan to return to district court and proceed to trial as soon as practicable."

The Institute of Electrical and Electronics Engineers (IEEE) and VMEbus International Trade Association (VITA) were just two of a number of amicus curiae who filed supporting briefs in the appeal. The IEEE and VITA briefs were cited favorably by the court in its 39-page opinion.

About the Case
Broadcom filed the antitrust case on July 1, 2005, alleging that Qualcomm has abused the wireless technology standards-setting process, failed to meet its commitments to license technology for cellular wireless standards on fair, reasonable and non-discriminatory terms, and has engaged in various other anticompetitive practices in the markets for cell phone technology and chipsets. The District Court had granted Qualcomm's motion to dismiss the case in August 2006. Broadcom is seeking multiple remedies in the case, including the elimination of royalties on Qualcomm's patents, treble damages, attorneys' fees, and an end to Qualcomm's discriminatory and anticompetitive practices.

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