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Judge Won't Ban Qualcomm Chips

October 11, 2006|From Reuters

An administrative law judge Tuesday said Qualcomm Inc. had infringed a Broadcom Corp. patent, but he stopped short of banning U.S. sales of cellphones with Qualcomm chips.

Analysts said investors, who had pushed down the stock on concerns about the case, were relieved that phones with Qualcomm chips were not banned.

"Anything outside of an injunction on cellphones doesn't change the landscape for Qualcomm," Stifel, Nicolaus & Co. analyst Cody Acree said.

Broadcom, based in Irvine, had asked the U.S. International Trade Commission to impose a ban on U.S. sales of certain Qualcomm chips and cellphones that include those chips.

The determination by Administrative Law Judge Charles Bullock is subject to review by the full commission and could be appealed. The commission is not expected to make its final ruling until February.

The judge said San Diego-based Qualcomm had infringed a Broadcom patent for wireless chips but had not infringed two others.

Qualcomm shares rose 83 cents to $37.07, and Broadcom stock fell 79 cents to $28.80.

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