Toll for a toll

27 April 2009 By Robert Cyran Follow @rob_cyran

The mobile technology firm agreed to a huge settlement in a patent suit filed by Broadcom. This certainly stings. But it strengthens Qualcomm s efforts to make handset firms like Samsung and Sony Ericsson pay substantial royalties for using its patents.

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Qualcomm has agreed to pay Broadcom $891m over four years to settle a patent dispute. The two technology companies agreed to not to assert patents claims against each other. Both companies also agreed not to sue the other firm's customers for patent infringement when the customer uses chips for non cellular devices. . Qualcomm customers do not receive the rights to Broadcom patents for cellular devices under the agreement, and visa versa. The first payment of $200m will be paid by the end of June.

The litigation began in 2005. In May 2007, a federal jury found Qualcomm had infringed on three Broadcom patents. That verdict was affirmed on appeal in November 2007.

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