Qualcomm Inc. has agreed to pay $891 million to Broadcom Corp. over four years to settle a patent dispute over technology used in the microprocessors that power mobile phones. Additionally, as part of the settlement, Qualcomm and Broadcom have both agreed to end their litigation and exchange rights to each others’ patents.
Prior to the settlement, both a federal court in California as well as the United States International Trade Commission had ruled that Qualcomm had violated Broadcom’s patents.
The argument involved chips made for so-called smartphones, the feature-rich devices that operate on third-generation, or 3G, networks. These devices have become particularly important for the cell phone industry as it seeks to find growth opportunities when most consumers already own phones.
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