Qualcomm rejected an offer from rival Broadcom to settle a high-stakes patent dispute over cell phone technology, claiming the proposed deal would cost it up to $2 billion, an Associated Press report said.
The Associated Press report said Qualcomm suffered a setback June 7 when the US International Trade Commission ruled in the dispute by banning imports of many advanced phones that carry Qualcomm chips starting in August, posing potentially severe headaches for many carriers and handset makers.
Broadcom this week offered to bill Qualcomm $6 for each handset sold that relied on the infringed patent, said Bill Davidson, Qualcomm's vice president of global marketing and investor relations, the Associated Press report said.
The patent covers a feature that conserves battery power, it added.
Under those terms, Qualcomm would pay between $1.5 billion and $2 billion over the three years remaining on the patent, the Associated Press report said.
Qualcomm countered with an offer to pay $100 million and agree to reciprocal royalty-free access to patents between the two companies, Davidson said.
Broadcom said in a statement that Qualcomm has 'failed so far to respond substantively' to its settlement offers, the Associated Press report said.
Broadcom attorney David Rosman said Qualcomm's offer lacked guarantees that its customers would be protected from claims of patent infringement by Qualcomm, the report said.