Qualcomm agrees to pay Broadcom $891 million

By on April 27, 2009, 10:03 AM
The longstanding scuffle over intellectual property rights has come to an end, with Qualcomm agreeing to pay its rival Broadcom $891 million over the duration of four years. An initial payment of $200 million will be made in the quarter ending June 30. The agreement is intended to dismiss all litigation between the companies, including all patent infringement claims in the International Trade Commission, the European Commission and the Korean Fair Trade Commission.

Some other terms of the agreement specify that Broadcom and Qualcomm will refrain from asserting patents against each other for their respective integrated circuit products among certain other products and services. Broadcom has agreed to not assert its patents against Qualcomm’s customers for their integrated circuit products incorporated in cellular products and Qualcomm won’t be forced to change the model that it uses to license its own chip technology. The companies have vaguely spoken of a multiyear patent agreement, but there are no specifics on the financial details.




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