Wednesday, July 18, 2007

Broadcom and Verizon Wireless Enter Licensing Deal to Allow Banned Phones

Broadcom signed a licensing deal with Verizon Wireless that permits the continued importation and sale by Verizon Wireless of mobile devices that are the subject of the current litigation between Broadcom and Qualcomm before the U.S. International Trade Commission.

Separately, Broadcom and Verizon Communications announced that they have entered into a strategic alliance involving new mobile device chipsets and other products, including Bluetooth and wireless LAN solutions, optical network solutions, Multimedia over Coaxial Cable (MoCA) devices, GPS location technology, and DSL and fiber network components including set-top boxes.

The newly signed licensing agreement allows Verizon Wireless to sell new handsets and other wireless devices, ensuring the availability of the latest cell phone technology in handsets and personal digital assistants (PDAs) to consumers and businesses.

Under the deal, Verizon Wireless will make payments to Broadcom at a rate of $6.00 for each 1xEV-DO handset, PDA or data card sold after the effective date, subject to a maximum payment of $40 million per calendar quarter and a lifetime maximum payment of $200 million. The agreement provides Verizon a license to the six Broadcom patents currently being litigated between Broadcom and Qualcomm. Other terms and conditions of the agreement are confidential.

Verizon Wireless also agreed to cease its efforts to overturn the ITC's recent order banning Qualcomm chips and certain cell phones based on those chips from importation, and will withdraw Verizon Wireless's motion to stay that same ITC remedy previously filed with the U.S. Court of Appeals for the Federal Circuit.

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