Judge Clears Way for Broadcom Customers to Use Its 3G Cellular Chips without Threat of Infringement Claims by Qualcomm

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February 14th, 2007 Leave a comment Visited 25 times, 1 so far today

Judge Clears Way for Broadcom Customers to Use Its 3G Cellular Chips without Threat of Infringement Claims by Qualcomm

Important Legal Victory for Broadcom Expected to Accelerate the Deployment of 3G Networks Worldwide

3GSM World Congress — Broadcom Corporation (NASDAQ: BRCM) , a global leader in semiconductors for wired and wireless communications, today announced that a ruling by a United States District Court clears the way for cellular handset makers Samsung and Panasonic to continue using Broadcom’s chips in WCDMA-based handsets without the threat of patent infringement claims by Qualcomm Incorporated (NASDAQ: QCOM) .

The court granted partial summary judgment in favor of Broadcom in a January ruling that Broadcom customers Samsung and Panasonic are permitted to use Broadcom’s chips in their WCDMA-based cellular handsets under the terms of their existing patent licenses with Qualcomm.

“This is an important victory for Broadcom because it removes the threat of Qualcomm launching patent infringement suits against our current 3G customers and substantially reduces the scope of Qualcomm’s patent claims against Broadcom’s 3G business. The ruling provides needed breathing room for our customers to deploy next generation handsets without the risk of litigation and is expected to accelerate the deployment of 3G networks worldwide,” said David Rosmann, Broadcom’s Vice President of Intellectual Property Litigation.

Broadcom filed its motion for partial summary judgment in December 2006 in response to Qualcomm’s claim that Broadcom’s sales of 3G WCDMA chips infringe a patent asserted by Qualcomm in the on-going patent litigation between the companies. The court agreed with Broadcom that both customers are licensed to incorporate Broadcom’s 3G cellular chips into WCDMA-based handsets. The ruling did not address Qualcomm’s remaining claims of direct infringement against Broadcom’s U.S.-based testing.

Broadcom is a major technology innovator in the global communications industry, with over 1,950 issued U.S. and 750 issued foreign patents, over 5,900 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video and data. Broadcom’s technology leadership is demonstrated by its product announcements today at the 3GSM World Congress, including the industry’s first 65nm single-chip EDGE system solution (the Broadcom(R) BCM21331) and the industry’s first single-chip HSDPA baseband modem with integrated application, audio and multimedia processors (the BCM2153), as well as its recent announcement of the world’s most advanced EDGE transceiver (the BCM2085), the industry’s first single-chip integrated Wi-Fi(R), Bluetooth(R) and FM solution for mobile devices (the BCM4325), and a new advanced silicon and software platform supporting Bluetooth mono and stereo headsets (the BCM2047 and BCM2044).

About Broadcom

Broadcom Corporation is a global leader in semiconductors for wired and wireless communications. Our products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. Broadcom provides the industry’s broadest portfolio of state-of- the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything(R).

Broadcom, one of the world’s largest fabless semiconductor companies with unaudited annual 2006 revenue of $3.67 billion, is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at http://www.broadcom.com/.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward- looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our business and industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Important factors that may cause such a difference for Broadcom related to its ongoing litigation with Qualcomm include, but are not limited to, our ability to secure a favorable Final Determination in the U.S. International Trade Commission proceeding against Qualcomm; our ability to prevail in the various federal lawsuits against Qualcomm; the ability of our patents to protect our intellectual property and products; our ability to enforce our intellectual property rights; and the risks associated with litigation in general, including the costs and time that must be devoted to litigation, the potential diversion of attention of management and key personnel that may result from being engaged in litigation, and the possibility of adverse results.

Our amended Annual Report on Form 10-K/A for 2005, amended Quarterly Report on Form 10-Q/A for the three months ended March 31, 2006, and subsequent Quarterly Reports on Form 10-Q, all filed January 23, 2007, and our recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Broadcom(R), the pulse logo, Connecting everything(R) and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Qualcomm(R) is a trademark of Qualcomm Incorporated. Wi-Fi(R) is a trademark of the Wi-Fi Alliance. Bluetooth(R) is a trademark of the Bluetooth SIG. Any other trademarks or trade names mentioned are the property of their respective owners.
Broadcom Business Press Contact
Bill Blanning
Vice President, Global Media Relations
949-926-5555
blanning {at} broadcom(.)com

Broadcom Financial Analyst Contact
T. Peter Andrew
Vice President, Investor Relations 949-926-5663
pandrew {at} broadcom(.)com





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