Broadcom Gets Smaller Patent Win

Wireless chipmaker opted for $19.6 million award in Qualcomm patent dispute.
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Broadcom

(BRCM)

says it will accept a $19.6 million award for patent infringement damages and seek an injunction against

Qualcomm

(QCOM) - Get Report

chips that use a disputed 3G technology.

A federal judge cut the original $39.2 million award in half and gave Broadcom the option to seek a new trial or accept the award.

The news comes just two days after the U.S. International Trade Commission dropped a patent infringement lawsuit filed by

Nokia

(NOK) - Get Report

against Qualcomm. The ITC backed out of the case in light of the current binding arbitration between the two wireless tech shops.

In September, a U.S. Court of Appeals for the Federal Circuit lifted a ban on Qualcomm chips that infringe on Broadcom patents. The ruling said the ban unfairly punished phone makers like

Motorola

(MOT)

,

Samsung

and

LG

, as well as telcos like

AT&T

(T) - Get Report

and

Verizon

(VZ) - Get Report

.

At its analysts day meeting earlier this month, Qualcomm says it has created so-called work-around solutions that would allow the phone companies to sell 3G phones while presumably not infringing on Broadcom patents.

Broadcom shares rose 59 cents to $27.73 and Qualcomm shares fell 26 cents to $40.20 in early trading Friday.