WASHINGTON-Broadcom Corp. filed an antitrust lawsuit against Qualcomm Inc., a move closely following Broadcom’s patent-infringement complaint against the San Diego-based firm in what appears to signify a strategic move by Broadcom to pursue entry into the CDMA wireless space.
Qualcomm said the lawsuit is meritless.
“Our goal is simply to ensure fair competition and a level playing field, not just for Broadcom, but for the entire cellular industry,” said Scott A. McGregor, president and chief executive officer of Broadcom. “Qualcomm’s practices prevent that. Their monopoly in CDMA technology has increased the price of cell phones in the U.S., and we are hoping that the courts will prevent the same thing from happening with the next generation 3G cell phones. Qualcomm’s monopolistic activities limit competition, stifle innovation, and ultimately harm consumers and service providers.”
“This case, like the earlier patent cases filed by Broadcom against Qualcomm, appears to be a desperate attempt by Broadcom to gain bargaining leverage through meritless litigation. Because Broadcom does not hold essential patents for the important cellular standards, Broadcom must feel compelled to resort to these kinds of measures rather than continuing to negotiate for licenses in good faith,” said Louis M. Lupin, senior vice president and general counsel of Qualcomm. “Broadcom’s unfortunate preference for the litigation forum rather than the negotiating table will require Qualcomm to proceed with litigation of its own.”
Broadcom, based in Irvine, Calif., filed the lawsuit in the U.S. District Court in New Jersey. Broadcom said the lawsuit asserts violations relating to Qualcomm’s abuse of the wireless technology standards-setting process; its failure to meet its commitments to license technology for cellular wireless standards on fair, reasonable and nondiscriminatory terms; and various anticompetitive practices of Qualcomm in the markets for cell-phone technology and chipsets.
The Broadcom complaint also alleges Qualcomm’s licensing arrangements violate its commitments to provide fair, reasonable and nondiscriminatory licensing terms to users of technology that is incorporated into telecommunications industry standards. Broadcom asserted that Qualcomm’s licensing abuses include charging discriminatory royalties, collecting double royalties, and demanding overly broad cross-license rights from its licensees, among other things.
