EYE OF THE STORM: QUALCOMM: Patent-infringement claims, cross-licensing negotiations, legal fights make for full plate

CDMA pioneer Qualcomm Inc. sat atop a busy week-with many more likely to come-as the company made moves in its legal battle with Broadcom Corp., stirred up the dust in a separate matter with Nokia Corp., and negotiated a new cross-licensing deal with Nortel Networks Ltd.
As for Broadcom, Qualcomm and the chipmaker will not meet Monday in a courtroom over a patent dispute, but they have not yet settled their differences, according to Broadcom. A succession of court dates remain on the calendar for the two competitors.
“The two companies have not yet reached a settlement with respect to the claims at issue,” Broadcom spokesperson Bill Blanning wrote in an e-mail.
Qualcomm had no immediate comment.
The case in question was filed by Qualcomm against Broadcom in U.S. District Court in San Diego in 2005 and includes at least six allegations of patent infringement. Broadcom countered with a similar complaint against Qualcomm on five of its patents. Monday’s now-canceled court date was one of more than a dozen already scheduled in the case between late March and August.
The canceled court date led to speculation this week in the media that the two companies were clearing their schedules to focus on a public hearing on March 21 at the United States International Trade Commission. That hearing will focus on appropriate remedies and their effect on the public interest in Broadcom’s complaint against Qualcomm that the latter infringed on five of its patents for radio frequency and analog circuit design. The commission has ruled that Qualcomm infringed on one of the five patents cited in Broadcom’s complaint.
The two companies have more legal disputes pending over mutual allegations of patent infringement in U.S. District Court.
The spat is just one of many on Qualcomm’s crowded legal calendar. The company, which makes money by selling mobile phone chips as well as licensing its technology, faces additional complaints of anti-competitive activity by Broadcom, L.M. Ericsson, NEC Corp., Nokia Corp., Panasonic and Texas Instruments Inc. before the European Commission, by Nokia in Delaware Chancery Court, and by Broadcom and Texas Instruments before the Korea Fair Trade Commission.
But perhaps the most pertinent issue for Qualcomm is the pending expiration at midnight on April 9 of a cross-licensing agreement between Qualcomm and Nokia. If no agreement is struck by then, both parties would be infringing on each other’s patents. The distance between the two companies-at least in terms of public statements about the secret process of negotiations in the matter-was illustrated earlier this week.
Qualcomm President Steve Altman told investors that Nokia has publicly stated it won’t continue to pursue a cross-licensing agreement with Qualcomm, yet will continue to sell its handsets with Qualcomm IPR without paying Qualcomm royalties.
That was news to Nokia.
“Our position has not changed,” said Laurie Armstrong, a Nokia spokeswoman, when apprised of Altman’s statement. “Nokia continues to negotiate in good faith, with the intention of reaching a mutually agreeable, cross-licensing agreement on a timely basis.”
Altman said that despite the full plate of legal challenges ahead, there’s “a distinct possibility” of additional litigation with Nokia over CDMA and W-CDMA technology. Yet he remained “optimistic” of reaching an agreement.
In other Qualcomm news, the company announced an expanded cross-licensing agreement with Nortel Networks Ltd. covering CDMA, GSM and other technologies. Interestingly, though, Qualcomm made sure to point out that the new agreement does not cover OFDM technology, which it lays claim to through its acquisition several years ago of Flarion Technologies Inc.