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April 30, 2009

Qualcomm, Broadcom settle patent dispute

Multi-year patent agreement to settle all their patent infringement litigations

By CBR Staff Writer

Chipmaker Qualcomm and Broadcom have settled all their patent infringement litigation worldwide through a multi-year patent agreement. Qualcomm has agreed to pay Broadcom $891m over a four-year period, of which $200m will be paid in the quarter ending June 30, as part of the settlement.

The agreement will result in the dismissal of all patent infringement claims with the International Trade Commission and US District Court of Santa Ana, as well as the withdrawal of all complaints by Broadcom with the European Commission and the Korea Fair Trade Commission.

As part of the agreement, Broadcom and Qualcomm have agreed not to assert patents against each other for their respective integrated circuit products and certain other products and services.

Paul Jacobs, chairman and chief executive at Qualcomm, said: The settlement will allow us to direct our full attention and resources to continuing to innovate, improving our competitive position in this economic downturn, and growing demand for wireless products and services. I am pleased that we have achieved this important settlement. At a time when the wireless industry should be focused on moving forward, the agreement removes uncertainty for Qualcomm and its customers.

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