U.S. Bans Some Qualcomm Chips

Federal trade regulators slapped Qualcomm (QCOM) with a partial ban on chip and phone imports that infringe on a Broadcom (BRCM) patent.

Upholding a patent infringement ruling against Qualcomm, the U.S. International Trade Commission says no more new shipments of 3G phones using Qualcomm chips can be imported into the country.

The order does not apply to phones and chips imported before today.

Qualcomm shares rose 3% in the wake of the news since the commission did not grant Broadcom a full injunction against all Qualcomm chip and phone imports.

The patent at the heart of the case is a chip that controls power management and battery use.

The ITC determined that Qualcomm violated Broadcom's patent but had waived a decision to take action against Qualcomm seven times prior to the action Thursday.

Qualcomm can appeal the ruling and has 60 days to convince the White House that the injunction should be denied.

There are at least three ongoing lawsuits between Qualcomm and Broadcom.

Last week, a federal court in California awarded Broadcom $19.6 million in damages after a jury determined that Qualcomm infringed on three of its patents.

Qualcomm shares rose $1.08 to $42.10 in after-hours trading Thursday.

>To order reprints of this article, click here: Reprints