U.S. Bans Imports of Cellphones using Qualcomm Chips in Patent Case

[Paul Martin]

<div class='os_post_top_link'><a href='http://www.nytimes.com/2007/06/08/business/08phone-web.html?_r=1&oref=slogin' target='_blank'>http://www.nytimes.com/2007/06/08/b...r=1&oref=slogin</a><br /><br /></div><i>"A federal agency has banned imports of new cellphones made with Qualcomm semiconductors because the chips violate a patent held by Broadcom. The International Trade Commission said today that the import ban would not apply to mobile phone models that were imported on or before June 7. The ruling is a blow to Qualcomm, to wireless handset makers like Motorola and Samsung, and to service providers like Verizon Wireless, SprintNextel and AT&amp;T. All three service providers sell phones that rely on Qualcomm chips for access to their high-speed data networks, and 80 percent of the phones sold by Verizon use Qualcomm’s technology. Analysts say the decision could also result in higher prices for cellphone users as companies pass along the costs of switching to the new technology."</i><br /><br />Broadcom and Qualcomm have been fighting for quite some time and the victim is the consumer. At issue is the EV-DO chip used for all those fun 3G features. According to an <a href="http://www.msnbc.msn.com/id/19115427/">MSNBC article</a>, device makers LG and Samsung will be affected the most as well as Motorola's upcoming 3G version of the RAZR2. Though the iPhone has been criticized by some for its slower 2.5G offering, it may turn out to be a <a href="http://db.tidbits.com/article/9031">blessing in disguise</a> since they do not use Qualcomm chips. Most of the US cellular carriers will see some challenge to their device lineup, especially Verizon, which as noted above, has 80 percent of its phones using the Qualcomm chip.<br /><br />The ITC announcement may not be the last word. On Friday, <a href="http://www.eetimes.com/news/semi/showArticle.jhtml?articleID=199902490">Qualcomm said</a> <i>"it will immediately ask for a delay from the courts. It will also request President George Bush veto the order issued by the US International Trade Commission."</i> You can read the official ITC announcement <a href="http://www.usitc.gov/ext_relations/news_release/2007/er0607ee1.htm">here</a>.

[Yata]

Qualcomm deserve this.

They've been bullying companies too long into paying stupidly high fees for a small range of patents. Now they're tasting their own medicine.

The cellular industry would be a much more innovative and competitive market without them.

[Paul Martin]

Qualcomm deserve this. They've been bullying companies too long into paying stupidly high fees for a small range of patents. Now they're tasting their own medicine.

Actually, in one news story I read as I was preparing this, I ran across this list in a comment by "Whiney Mac Fanboy" on Slashdot (http://yro.slashdot.org/article.pl?sid=07/06/08/0429200):
Play with patent fire and you're going to get burned. Remember Qualcomm suing Nokia (http://www.qualcomm.com/press/releases/2006/060524_initiates_patent_infringement.html)? [qualcomm.com], Qualcomm suing GTE Wireless (http://www.qualcomm.com/press/releases/2002/press789.html) [qualcomm.com], Qualcomm suing Maxim (http://www.qualcomm.com/press/releases/2002/press1127.html) [qualcomm.com], Qualcomm suing Motorolla (http://www.qualcomm.com/press/releases/1999/press414.html) [qualcomm.com], Qualcomm suing Ericsson (http://www.qualcomm.com/press/releases/1997/press875.html) [qualcomm.com], Qualcomm suing Broadcom (http://www.qualcomm.com/press/releases/2006/060329_sues_broadcom_misappropriation.html) [qualcomm.com]?
Ouch!

[daS]

I'm not sure how much impact this ruling will really have. Exempted from the ban are chips installed in PC Cards, PDAs and "smartphones" (lower case "s") defined as phones with full QWERTY keyboards. The percentage of broadband phones that do not fall into one of these categories is small (since I assume that the carriers will try to stretch the definitions.)

In the end, what will happen is the same as most other such cases: Qualcomm will be forced to pay off Broadcom, or delay the order with appeals long enough to put newer chips in the queue that are not part of the patent suit.

I do hope that with yet another high profile patent ruling, there will be a bigger push to reform this hugely broken system. :evil:

[Paul Martin]

I'm not sure how much impact this ruling will really have. Exempted from the ban are chips installed in PC Cards, PDAs and "smartphones" (lower case "s") defined as phones with full QWERTY keyboards. The percentage of broadband phones that do not fall into one of these categories is small (since I assume that the carriers will try to stretch the definitions.)

David,

I missed the exemptions. Obviously, that would be good news. Can you point us to a source? Thanks!

[JvanEkris]

I'm not sure how much impact this ruling will really have. Exempted from the ban are chips installed in PC Cards, PDAs and "smartphones" (lower case "s") defined as phones with full QWERTY keyboards. The percentage of broadband phones that do not fall into one of these categories is small (since I assume that the carriers will try to stretch the definitions.)And a full keyboard is one with a seperate row of numeric keys above the letters, an escape key, an ALT key, a PG UP and PG dn button and of course those o so usefull functionkeys (all 12 of them)? If that is the case, all of the known PDA's still are allowed into the US:D

Jaap