A federal judge Monday ordered Qualcomm ( QCOM) to stop selling 3G mobile phone chips that infringe on patents held by rival Broadcom ( BRCM), according to published media reports.
U.S. District Judge James Selna also ruled, however, that Qualcomm can continue to sell chips that were already on the market as of May 29, 2007, so long as it pays royalties to Broadcom. The May date is when a jury ruled that Qualcomm was infringing upon three Broadcom patents. The latest legal setback for Qualcomm is part of a patent battle that dates back to May 2005. In November, Broadcom agreed to accept a $19.6 million award for damages in the case. Qualcomm shares ended trading Monday down 22 cents at $39.35, while Broadcom shares finished the session down 7 cents at $26.14.