Verizon, Broadcom Have Deal to Bypass Qualcomm Ban
Verizon Wireless has agreed to pay Broadcom Corp. as much as $200 million in exchange for the right to use certain patents that are the subject of Broadcom’s present dispute with Qualcomm, Information Week reported Friday. The deal will allow Verizon to continue importing phones containing the disputed technology.
Under the terms of the deal, Verizon must pay $6 per phone in licensing fees to Broadcom, up to maximums of $40 million per quarter and $200 million total. Previously, Verizon had taken Qualcomm’s side in the dispute.
In June, the U.S. International Trade Commission banned the importation of certain telecom chips made by Qualcomm, after a California jury had found that the chips infringed on patents held by Broadcom. President Bush has until Aug. 7 to sustain or veto the decision.