Appeals Court Rules Against Qualcomm

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A federal appeals court has turned down Qualcomm Inc.'s request to hold off imposition of an injunction against sales of some of the company's cellphone chips, while Qualcomm pursues an appeal of a patent suit won by rival Broadcom Corp.

The U.S. Court of Appeals for the Federal Circuit, without providing details, ruled Tuesday that Qualcomm had not met its burden of proof to win a stay pending appeal of the injunction, which was ordered by federal judge in Santa Ana, Calif. on December 31.

The appeals court also denied a motion for Sprint Nextel Corp. to intervene in the case. The company is among the cellphone carriers potentially affected by the injunction.

A federal jury concluded last year that Qualcomm infringed three Broadcom patents, covering features that include digital-video technology, technology for allowing cellphones to use two or more networks simultaneously as well as a push-to-talk feature for instant communications between phones.

The subsequent injunction by U.S. District Judge James Selna had an immediate effect on U.S. sales of some handsets using Qualcomm chips. But most of the affected products fall under a sunset provision so that the company can continue selling them through January 2009 if it pays royalties to Broadcom. Qualcomm has been working on technical changes to some products to avoid infringing the Broadcom patents.

A Qualcomm spokeswoman, in a prepared statement, said: "Although our motion for a stay was denied, the Federal Circuit has recognized the need for speedy resolution of the many issues raised by the verdict and remedy in this case, and has therefore granted Qualcomm's motion for an expedited schedule for briefings and oral argument."

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