Qualcomm and Broadcom friends again, and it only cost $891 million

One time upon a time there were two processor manufactuers: Qualcomm and Broadcom. Qualcomm fabricated some chips that looked a little too much similar Broadcom'southward and the two stopped being BFFs, making everyone lamentable. In fact, Broadcom was so upset, information technology took Qualcomm to courtroom and defendant it of patent infringement.

This went on in and out of weeks and nigh over three years. At i point, a mean ol' federal gauge said Qualcomm couldn't sell its processors anymore, but the cagey lawyers institute a way around that, and another judge said a ban just wasn't off-white, and some of your favorite smartphones go on to be powered by Qualcomm.

Fast forward to today, and everyone's kissed and made up. OK, being paid $891 million would brand me kiss and brand up with merely about anyone, too. And that'southward just what's been done, with the 2 manufacturers finally reaching an agreement in the case and agreeing to put downwardly their swords, says Engadget. Full deets after the jump, only we're going to spend the residue of the afternoon coming to terms with the fact that it'due south over. It's really over.

For now.

SAN DIEGO and Irvine, Calif., April 26 /PRNewswire-FirstCall/ -- Qualcomm Incorporated (Nasdaq: QCOM) and Broadcom Corporation (Nasdaq: BRCM) today announced that they have entered into a settlement and multi-year patent agreement. The agreement will result in the dismissal with prejudice of all litigation between the companies, including all patent infringement claims in the International Merchandise Commission and U.Due south. District Court in Santa Ana, besides as the withdrawal by Broadcom of its complaints to the European Commission and the Korea Fair Trade Commission. Under the agreement, the companies take granted sure rights to each other under their respective patent portfolios. Qualcomm will pay Broadcom $891 one thousand thousand over a four-year period. The terms of this understanding volition not result in whatever change to Qualcomm's 3G (east.g., CDMA2000(R), WCDMA and TD-SCDMA) and 4G (e.g., LTE and WiMAX) licensing revenue model.

The terms of the understanding include, among other elements:

Broadcom and Qualcomm concord not to assert patents against each other for their respective integrated excursion products and sure other products and services;
Broadcom agrees not to assert its patents against Qualcomm's customers for Qualcomm'south integrated excursion products incorporated into cellular products;
Qualcomm's customers do not receive rights to any of Broadcom'due south patents with respect to Qualcomm integrated circuit products incorporated into non-cellular products and equipment;
Qualcomm agrees non to assert its patents against Broadcom's customers for Broadcom'due south integrated circuit products incorporated in not-cellular products;
Broadcom customers practise non receive rights to any of Qualcomm'south patents with respect to Broadcom integrated circuit products incorporated into cellular products and equipment;
Qualcomm will pay Broadcom $891 million in cash over a menses of four years, of which $200 meg volition exist paid in the quarter ending June 30, 2009. The agreement does non provide for any other scheduled payments betwixt the parties.

Other terms of the understanding are confidential.

"We believe that this resolution is positive for both Qualcomm and Broadcom, our customers, our partners and the overall industry," said Dr. Paul E. Jacobs , chairman and CEO of Qualcomm, and Scott A. McGregor , president and CEO of Broadcom.

"The settlement will allow the states to direct our total attending and resources to standing to introduce, improving our competitive position in this economic downturn, and growing demand for wireless products and services," Jacobs said. "I am pleased that we take achieved this of import settlement. At a fourth dimension when the wireless industry should exist focused on moving forward, the understanding removes uncertainty for Qualcomm and its customers."

"Today'due south settlement allows both companies to move on with their business and compete in the semiconductor sector every bit 2 of its innovation leaders," McGregor said. "We have set bated our differences while addressing the needs of our customers, our shareholders and the industry. In add-on, the companies take worked together to achieve their common goals of improving the competitive dynamics of the industry."

Nigh Qualcomm

Qualcomm Incorporated (Nasdaq: QCOM) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 100 Index, the S&P 500 Index and is a 2009 FORTUNE 500(R) company. For more information, please visit www.qualcomm.com.