Broadcom Corp., NEC Corp., Nokia Corp., LM Ericsson, Panasonic Mobile Communications and Texas Instruments Inc. backed off complaints they made in October 2005 that Qualcomm broke agreements among patent holders to keep costs at reasonable levels for key WCDMA patents used in third-generation phones.
Qualcomms general counsel Don Rosenberg said the company was “extremely pleased” that the four-year EU investigation was over without any charges filed.
Ericsson said it would no longer back the EU investigation but would pursue discussions with other antitrust regulators around the world.
It said phone companies had filed “substantial economic evidence that Qualcomms conduct has caused mobile phone [...]

“All complainants have now withdrawn or indicated their intention to withdraw their complaints,” the European Commission said in a statement today. “In view of this, the commission doesnt consider it appropriate to invest further resources in this case.”
The end of the case means Qualcomm, the worlds biggest maker of chips for mobile phones, will avoid the possibility of being forced by the EU to cut royalty fees. In the most recent quarter, 74 percent of Qualcomms operating income came from technology licensing and 35 percent came [...]

Phones or other gadgets using the displays from the factory in Taiwan could be on the market before the end of the year, said Jim Cathey, Qualcomms vice president of business development.
Qualcomms “mirasol” displays are different from regular color LCDs because they dont shine with their own light. Instead, they reflect ambient light. Tiny mirrors move in the screens to manipulate light in much the same way that a peacocks plumage gets its scintillating hues.
The mirrors consume power only when theyre moving, so mirasol screens can show a static image with very little battery drain. They share this ability with [...]

The order bars the four companies from selling from inventory any items that infringe on the patents, Tessera said.
Tessera, which develops miniaturization technology for electronics makers, had asked the ITC in December to consider banning imports of the packaging products.
Qualcomm said in a statement that it had already shifted the U.S. supply of the chips in question to a licensed supplier, Amkor.
“This permits Qualcomm to continue to supply the U.S. market without interruption,” the company said.
Qualcomm said it disagreed with the ruling. It also said the patents will expire in 2010, and [...]

The U.S. International Trade Commission yesterday said Qualcomm, Motorola Inc. and four other companies infringed Tessera patents for the packaging on their chips. It issued an order, which is subject to presidential review, to halt imports of certain chips by the companies that arent covered by licenses and forces Qualcomm, Motorola, Freescale Semiconductor Inc. and Spansion Inc. to stop selling unlicensed chips they have on the U.S. market.
The Tessera patents cover a way of making packaging to surround the chips so they are protected from damage [...]

The settlement with Broadcom, announced late Sunday, calls for Qualcomm to pay $891 million over four years. Broadcom is a relative newcomer to the business of making chips for cell phones but proved to be a fierce legal adversary.
Qualcomm lost $289 million, or 18 cents a share, during the three months ended March 29, compared to a profit of $766 million, or 47 cents a share, a year ago. The latest quarter includes a charge of $748 million, or 43 cents a share, to pay Broadcom.
Qualcomms second-quarter revenue slid 5.8 percent to $2.46 billion from $2.61 billion, above an average [...]

The companies will license each others patents and pledged not to sue each other again, according to a joint statement yesterday. The first payment, of $200 million, will be made by June 30. The deal doesnt affect Qualcomms revenue model of licensing its technology to handset manufacturers and phone- service providers, the company said.
The agreement removes a threat hanging over Qualcomm, which had been forced to limit some of its phone-chip sales after losing a trial to Broadcom in May 2007. Qualcomm faced a hearing next [...]