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Court Enjoins Broadcom

SAN DIEGO -- QUALCOMM Incorporated (NASDAQ:QCOM) , a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, reported today that the Federal Court in San Diego has enjoined Broadcom from any further solicitation, use or dissemination of QUALCOMM's confidential WCDMA trade secrets, including source code. Broadcom's agreement to the injunction and its imposition by the Court demonstrate that an earlier Broadcom press release, reporting that QUALCOMM's request for such an injunction had been denied, was erroneous. The preliminary injunction will remain in effect at least through completion of the trial in this case, presently set to start on October 10, 2007.

"QUALCOMM is pleased with the injunction against Broadcom prohibiting any use of our confidential information, as well as the prohibition against future attempts to obtain such information," said William Sailer, senior vice president and legal counsel for QUALCOMM. "While we welcome fair competition in the marketplace, we will defend our business against those who attempt to misappropriate the benefits of our extensive and continuous investment in research and innovation. This preliminary injunction is an important first step toward protecting QUALCOMM from Broadcom's misappropriation and misuse of QUALCOMM's intellectual property."

As explained in QUALCOMM's motion seeking the injunction, QUALCOMM recently discovered that Broadcom, during the period leading up to its introduction of WCDMA baseband products, had engaged in a successful multi- year effort to improperly acquire thousands of pages of QUALCOMM confidential business and technical information, including valuable source code, relating to QUALCOMM's WCDMA product development. The preliminary injunction bars any use of the confidential technical and business information in the misappropriated QUALCOMM documents, including by the exploitation of such information in the marketing, sales or development of Broadcom's current or future products. It is a court order, the violation of which could result in a finding of contempt.

Qualcomm Inc. (Nasdaq: QCOM)

Pete Baldwin 12/5/2012 | 3:36:31 AM
re: Court Enjoins Broadcom (Official Broadcom response, sent to us by e-mail:)


TodayGÇÖs press release from Qualcomm is misleading in several fundamental respects. Qualcomm knows that this preliminary injunction is far narrower in scope than the one they requested before the October 2 hearing. They also know that at the hearing Broadcom volunteered to enter into an appropriately-narrow preliminary injunction to quarantine a limited set of Qualcomm documents until the parties have an opportunity to argue the merits of the case at trial. We readily agreed to a quarantine because we have never used or had any desire or intention to use those documents.

This preliminary injunction reflects an agreement by the parties to maintain the status quo pending trial. Broadcom has not misused any Qualcomm trade secrets, so the quarantine until trial will have no effect on our business. We remain confident that the court will ultimately find that Broadcom did not misappropriate Qualcomm's trade secrets.

The documents that have been quarantined represent a small fraction of those originally identified by Qualcomm. And at the October 2 hearing, Qualcomm withdrew its allegations of theft of source code by Broadcom after we demonstrated that they were false.

As reported in BroadcomGÇÖs original press release, at the hearing U.S. District Judge Rudi Brewster roundly rejected QualcommGÇÖs overreaching and anticompetitive attempt to shut down BroadcomGÇÖs 3G cellular chip business, saying: GÇ£A preliminary injunction is something to preserve the status quo until you get a judgment. But a preliminary injunction as proposed by the Plaintiff would go way out and beyond. It would be an executive order of a rule-making kind of a revolutionary document in which Qualcomm would be controlling every breath that Broadcom takes. I'm not prepared to do that.GÇ¥

At the hearing, both Broadcom and Judge Brewster noted that many of the documents originally identified by Qualcomm simply are not trade secrets. The parties subsequently agreed to reduce the documents at issue to a small fraction of those originally identified by Qualcomm. Broadcom and Qualcomm then stipulated to an order whereby the reduced set of documents would be quarantined pending trial in the matter.
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