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December 01, 2008

Hiding Patents = Waiver, Federal Circuit Tells Qualcomm

You'd think Qualcomm must've known something bad would happen. 

It sued rival semiconductor maker Broadcom for using video compression technology that Qualcomm claimed as its own.  But Qualcomm had hornswaggled Broadcom.  

It had induced the industry (and hence Broadcom) to adopt the (Qualcomm) technology by pretending that it (Qualcomm) didn't own (hadn't patented) the (Qualcomm) technology.  In fact it held two patents relating to what, thanks to its non-disclosure, had become the new industry standard.

Qualcomm made the something bad worse by pretending that it hadn't influenced the standard-setting process.  The truth eventually came out (during testimony of Qualcomm's final trial witness), and the hammer fell.  Wham!  The district court concluded that Qualcomm waived its right to enforce the patents, declared them unenforceable as against all the world, and awarded fees and costs to Broadcom.

The Federal Circuit today agreed but limited the unenforceability decree to products that use the industry standard.  Qualcomm Inc. v. Broadcom Corp., No. 07-1545 (Fed. Cir. Dec. 1, 2008).

FeedIcon Let's please not even talk about the option back-dating unpleasantness.

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