New Trade Setback at Qualcomm

A ban on cell-phone chips could hit Motorola.
Author:
Publish date:

Qualcomm

(QCOM) - Get Report

did not convince U.S. trade regulators to suspend a ban on 3G phone imports, adding to concerns about weaker holiday sales for

Motorola

(MOT)

.

The International Trade Commission denied Qualcomm's request to stay an order banning chips and phones that infringe on

Broadcom's

(BRCM)

patent. Earlier this month, the ITC upheld a patent infringement ruling in favor of Broadcom, sayings no more shipments of new 3G phones using Qualcomm chips can be imported into the country.

Qualcomm shares were up slightly in early trading Friday. The San Diego wireless tech shop has said it is working on an appeal of the ruling. Analysts say Qualcomm won't likely suffer any hit to earnings in the near-term.

But for Motorola, the ban could be painful. Already late to 3G technology, Motorola was expected to roll out several models in a bid to catch up. Among the new phones affected if the ban is upheld is the very important Razr 2, the flagship of Motorola's handset resurgence.

Motorola shares fell a dime to $18.05 early Friday.