Qualcomm barred from using Broadcom 3G patents

By Gina Keating

LOS ANGELES (Reuters) - A federal judge in California ruled on Monday that wireless chip maker Qualcomm Inc (QCOM.O: Quote, Profile, Research, Stock Buzz) must immediately stop selling third-generation, or 3G, WCDMA cellular chips that infringe on the Broadcom Corp (BRCM.O: Quote, Profile, Research, Stock Buzz) patents.

U.S. District Judge James Selna ruled, however, that Qualcomm can keep selling some chips whose designs infringe three patents held by rival Broadcom through January 2009.

Qualcomm also is restricted to selling only cellular chips it was offering as of May 29, 2007 -- when a Santa Ana, California jury found that it infringed on the Broadcom patents -- and only to customers it had as of that date.

A Qualcomm spokeswoman said the company's attorneys were reviewing the ruling and had no immediate comment.

In a statement, Broadcom General Counsel David Dull said the company was "pleased with today's ruling."

"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," Dull said.

WCDMA mobile wireless technology provides much higher data speeds to mobile and portable wireless devices than most North American networks.

Qualcomm also must pay mandatory royalties to Broadcom for the chips it sells during the "sunset period" ending January 31, 2009.