Jim Cramer Blog

Qualcomm Inc. engaged in "aggravated litigation abuse" and waived its rights to enforce the video transmission technology patents involved in its lawsuit with Broadcom Corp., a federal judge ruled Monday.

The video transmission technology patents cannot be enforced because Qualcomm deliberately concealed them from the Joint Video Team, a standards-setting group, according to a release.
The company also failed to produce thousands of documents related to the case until after the end of the January trial, which was considered misconduct. Qualcomm was also ordered to pay Broadcom's legal fees, according to a release.
San Diego-based Qualcomm (NASDAQ: QCOM - News) sued Broadcom in October 2005 alleging violation of video transmission patents. A jury sided with Broadcom, but in May the company said the 35,000 documents concealed from the trial by Qualcomm put the validity of the case into question, according to the Wall Street Journal.
According to a release, "The court concluded, 'In light of all the above evidence finally revealed, the eventual collapse of Qualcomm's concealment efforts exposes the carefully orchestrated plan and the deadly determination of Qualcomm to achieve its goal of holding hostage the entire industry.'"
Qualcomm said it will appeal the decision, according to Reuters. Several other lawsuits remain between the two companies.
Irvine-based Broadcom (NASDAQ: BRCM - News) produces semiconductors for wired and wireless communications.
Published August 7, 2007 by Los Angeles Business from bizjournals

Labels: BRCM, Broadcom Corp., QCOM, Qualcomm Inc.