Broadcom warns Bush over Qualcomm chip veto

Chipmaker Broadcom has urged the White House not to veto a ruling which bans the import into the US of phones containing technology from rival manufacturer Qualcomm.

In May Broadcom won a major patent infringement case against Qualcomm in which the US International Trade Commission (ITC) and a federal jury both found that Qualcomm had infringed on four Broadcom patents in the design of its 3G mobile-phone chips. As a result, the ITC banned the import of phones using the Qualcomm chips — devices which are sold by major operators such as Sprint Nextel and Verizon Wireless.

Broadcom subsequently offered Qualcomm a deal whereby a $6 (£3) royalty would be paid to Broadcom on each Qualcomm handset sold using the technology, which extends the battery life of phones. Qualcomm rejected the offer and has since sought a presidential veto on the ban. The White House has until 6 August to veto the ITC's decision.

David Dull, Broadcom's senior vice president and general counsel, said on Thursday that a presidential veto would harm the US's position on intellectual property issues. "In this case, the administration faces one of the most critical decisions on trade policy in recent years," he said. "Overturning the ITC's remedy for Qualcomm's patent infringement would ultimately make it more difficult for US companies to defend their IP [intellectual property] rights and complicate the administration's IP policy initiatives. Policy makers around the world are watching this decision closely to ascertain its implications for a wide range of sensitive trade issues involving IP rights."

A statement from Broadcom on the matter also suggested that countries such as China and Brazil — both seen as lax on IP issues — would "take comfort in a presidential decision that places political considerations ahead of property rights", adding that a veto would "entrench Qualcomm's monopoly".

"Broadcom has prevailed against Qualcomm in every legal venue in which our patent disputes have been tried," said Dull. "Yet Qualcomm's response has not been to come to the negotiating table like a responsible company. Instead they turn to the US government with a request to bail out Qualcomm and its customers for free."

Dull also slammed Qualcomm's claims that the ban could have a negative effect on public safety, arguing that such suggestions were "cynical, disingenuous and wrong".