TI Wins Patent Case

DALLAS -- The Delaware Supreme Court has affirmed the ruling of the Delaware Court of Chancery, by a 5-0 vote, rejecting a claim by Qualcomm Incorporated that Texas Instruments Incorporated (TI) (NYSE:TXN) materially breached the parties' cross-license agreement.

Qualcomm had appealed a ruling by Chancellor William B. Chandler, III of the Delaware Court of Chancery, issued in June last year. In that ruling, the court rejected an assertion by Qualcomm that TI materially breached the cross-license agreement that has existed between the companies since December 2000. The Delaware Supreme Court heard the appeal April 20 and in its finding, dated June 8, affirmed the Court of Chancery ruling that no such material breach of the agreement occurred.

With Qualcomm having abandoned in August 2004 a previous claim for damages, the latest ruling disposes of all outstanding claims in the existing litigation between the parties. The license rights of each party under the cross-license agreement remain in effect.

"We are pleased that the Delaware Supreme Court has upheld the Court of Chancery's ruling in TI's favor on these issues. We believe that this was the correct outcome," said Senior Vice President and General Counsel Joseph F. Hubach.

Texas Instruments Inc.