A federal judge has told Qualcomm (NASDAQ: QCOM) that it can no longer make chips based on three patents held by rival Broadcom (NASDAQ: BRCM). The company can make use of the intellectual property for another year, giving its some time to reach resolution with its rival.
Qualcomm will almost certainly have to pay royalties if it wants to keep marketing chips based on the Broadcom patents.
According to The Wall Street Journal, "The chips are used in two kinds of third-generation cellular networks -- one called EV-DO, which Qualcomm developed, and another called WCDMA that is supported by a broader array of chip makers."
Reuters quotes Broadcom's general counsel as saying, "Broadcom should not have to compete against companies that use Broadcom's own patented technology against us, and this injunction puts a stop to Qualcomm doing just that."
It now appears that Qualcomm's strategy of leaning on customers and rivals has come to an end.
Douglas A. McIntyre is an editor at 247wallst.com.
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