Qualcomm files suit against TI

Qualcomm has filed a suit against Texas Instruments for alleged breach of a Patent Portfolio Agreement which the companies signed in December 2000.

Qualcomm Incorporated, pioneer of Code Division Multiple Access (CDMA) digital wireless technology, has filed a suit against Texas Instruments for alleged breach of the Patent Portfolio Agreement which the companies signed in December 2000.

The agreement covers both companies’ patent portfolios, providing rights to each company to supply integrated circuits on a worldwide basis for all wireless standards.

The complaint, filed on July 25, 2003 in Delaware, seeks damages and termination of Texas Instruments’ rights under the agreement.

‘We have reviewed the complaint against TI and feel it is without merit. We will contest it vigorously,’ said Joseph F Hubach, TI senior vice president, secretary and general counsel.

Hubach added: ‘We believe this complaint may be motivated by TI’s recent announcement that we will begin sampling cdma2000 1X chips to a broad range of customers. Qualcomm has enjoyed many years of selling CDMA chips against little or no competition.

‘TI intends to establish this market as a level playing field in which open competition prevails and consumers benefit. This is the case in every other wireless market in which TI competes. Qualcomm’s legal manoeuvres will not distract us from pursuing the CDMA market.’

On May 15, TI announced its plans to offer chips based on the cdma2000 1X standard with samples available this quarter.