After pounding Qualcomm in court over patent disputes
, Broadcom has been looking for ways to make up for their supposed losses due to Qualcomm's infringement. They are going straight to the source
, seeking to latch on to one of Qualcomm's largest customers, Verizon.
Verizon has entered into a deal with Broadcom in which they will be paying royalties to them for many devices, including any that have certain Qualcomm 3G chips inside. The royalty is fairly high, at $6 per unit, but it has a cap of $200 million. By the same token, it gives Verizon breathing room, not having to worry about any “litigation” regarding Broadcom patents.
The entire goal of this for Verizon
, of course, is to avoid having to pull any products from the shelves or delay putting any products into market.