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Qualcomm Takes Double-hit On Patents


Qualcomm, the wireless technology group, has been hit by a double-whammy of patent-case setbacks, both against Broadcom, its bitter rival.

A federal judge in San Diego ruled that Qualcomm waived its rights to two video-related patents in a dispute with Broadcom, in part because it deliberately concealed them from a standards-setting body.

The disputed patents related to a compression standard used in some high-definition video products.

The judge found that Qualcomms claim to its intellectual property rights was rendered invalid as the group concealed two patents from the standard setting body responsible for developing the H.264 video standard.

The finding came hours after the Bush administration upheld a US International Trade Commission (ITC) ruling that banned imports of new 3G mobile phones containing Qualcomm microchips.

The ban followed a separate ITC ruling earlier this year, which said that Qualcomm infringed Broadcom patents on technology to conserve battery power.

Susan Schwab, the US Trade Representative, said that she was sticking to a long practice of declining to overrule the ITC unless conditions were “extraordinary.”

The White House has overruled the ITC only five times, most recently in 1987.

In June, the ITC banned imports of new, high-end phones that run on Qualcomm chips, raising doubts about the introduction of some models from carriers including Sprint Nextel and manufacturers such as LG Electronics and Samsung Electronics.

Ms Schwab noted that industry players are working on alternative products to avoid the ban. She said that a Department of Homeland Security review found insufficient justification for overturning the order on grounds that it would create problems for public safety agencies.

Qualcomm said that it will ask the US Court of Appeals for the Federal Circuit in Washington to reverse the ban and put it on hold while its appeal is considered.

The ban applies to the high-speed EV-DO and WCDMA network technologies, which allow users to surf the internet more quickly and download music and video.

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