Qualcomm rejects Broadcom settlement offer

Wireless technology developer Qualcomm rejected an offer from rival Broadcom to settle their ongoing legal battle over chip patents. Broadcom reportedly offered to bill Qualcomm $6.00 for each handset sold with technology based on the disputed patent--Qualcomm declined, saying that such an agreement would cost the company between $1.5 billion and $2.0 billion during the three years remaining on the patent. Qualcomm responded by offering to pony up $100 million as well as agreeing to reciprocal royalty-free access to patents between the two companies. Broadcom's take: Qualcomm has "failed so far to respond substantively" to its offer.

On June 7, the U.S. International Trade Commission banned U.S. imports of new mobile phones manufactured with Qualcomm chips after determining infringement on Broadcom patents--Qualcomm said plans to petition a federal court to prevent the ITC ban, and suggested it would seek President Bush to override the order as well. According to Deutsche Bank analyst Jonathan Goldberg, the Broadcom settlement offer represents a positive move forward, adding that Qualcomm recognizes the necessity of putting the matter to rest. "We think Qualcomm internally has a strong interest in settling with Broadcom on reasonable terms so they can return their focus to securing a new license agreement with Nokia and on their core licensing and chipmaking businesses," Goldberg wrote.

For more on the Qualcomm/Broadcom battle:
-read this Forbes article