San Diego Federal Court Finds That Qualcomm Engaged in Aggravated Litigation Misconduct and Intentional Abuse of Industry Standards

San Diego Federal Court Finds That Qualcomm Engaged in Aggravated Litigation Misconduct and Intentional Abuse of Industry Standards

Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that a San Diego federal court ruled yesterday that Qualcomm Incorporated (Nasdaq: QCOM) engaged in aggravated litigation misconduct and standards abuse with respect to two Qualcomm patents that relate to digital video technology. The court ruled that Qualcomm has thereby waived its rights to enforce all claims of the two patents and any continuations, continuations-in-part, divisions, reissues, or any other derivatives of those patents. The court also ordered Qualcomm to pay all of Broadcom’s reasonable attorneys’ fees, court costs, expert witness fees, travel expenses and any other litigation costs reasonably incurred by Broadcom in defending the patent infringement case that led to the rulings.

Citing the misconduct of Qualcomm’s employees, witnesses, and counsel before, during and after trial, the court found that “Broadcom proved this to be an exceptional case by clear and convincing evidence based on (1) Qualcomm’s bad faith participation in the H.264 standard-setting body, the Joint Video Team (JVT); and (2) the litigation misconduct of Qualcomm through its employees, hired outside witnesses, and trial counsel during discovery, motions practice, trial and post-trial proceedings.” According to the court, “Qualcomm closely monitored and participated in the development of the H.264 standard, all the while concealing the existence of at least two patents it believed were likely to be essential to the practice of the standard, until after the development was completed and the standard was published internationally. Then, without any prior letter, email, telephone call, or even a smoke signal, let alone attempt to license Broadcom, Qualcomm filed the instant lawsuit against Broadcom for infringement of the ‘104 and ‘767 patents.”

“The court’s findings indicate that this is one of the most serious and egregious cases of standards abuse and litigation misconduct that our industry has ever witnessed,” said David J. Rosmann, Broadcom’s Vice President of Intellectual Property Litigation. “While we are gratified with the court’s ruling, we are also disappointed that Qualcomm chose to stoop to such tactics.”

Read the complete Press Release