Qualcomm rejects Broadcom pact

Qualcomm said it would not agree to a patent-settlement proposal from Broadcom that Qualcomm estimated would cost it between $1.5 billion and $2 billion over the next three years. Qualcomm said the proposal was unreasonable and instead offered Broadcom $100 million and royalty-free licensing of its cellular technology. Broadcom claimed accepting such an offer would leave its handset makers liable for royalties to Qualcomm, which the company said is unacceptable. Qualcomm said the Broadcom proposal amounts to $6 per mobile phone, a royalty rate of about 30 percent on its chips. Qualcomm's general counsel Louis Lupin said Broadcom's real motivation is to "destroy Qualcomm's business model."

For more on Broadcom and Qualcomm's patent-settlement:
- read this WSJ article (sub. req.)

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