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Broadcom: 'Bush veto would affect global IP policy'

Posted: 06 Jul 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Qualcomm-Broadcom dispute? patent infringement? White House veto?

Broadcom Corp. has asked the White House not to repeal an International Trade Commission (ITC) ruling banning Qualcomm chip imports to the United States, saying the decision was a market-based, win-win solution for both suppliers and consumers.

David Dull, senior VP and general counsel for Broadcom, conceded that President George W. Bush had a tough choice to make but argued that a veto could mean dire consequences on national policy.

"Overturning the ITC's remedy for Qualcomm's patent infringement would ultimately make it more difficult for U.S. companies to defend their IP rights and complicate the administration's IP policy initiatives," Dull remarked in a press statement detailing the company's position ahead of the key decision on the infringement case.

The executive said foreign policymakers are closely watching Bush as he makes one of the administration's "most critical decisions on trade policy in recent years" to determine its implications on IP rights-related trade issues. Countries such as China, Brazil and the developing world would likely take Bush's verdict as cue with regard to tackling their own IP enforcement.

"Leaving the ITC order and remedy intact would also promote a level playing field that would foster competition, innovation and growth," Dull added.

Last May 29, an ITC panel found that Qualcomm's cellular chips infringe four different Broadcom patents. It handed down a June 7 order banning the importation of future model cellphones that contain those chips.

Qualcomm has been petitioning for a Bush bailout after it failed in its ITC appeal for a stay, arguing that the limited ban will disrupt the cellular industry and the U.S. economy. It has also proposed a settlement offer, but Broadcom rejected the deal.

U.S. Trade Representative Susan Schwab has been tasked to conduct the presidential review on the ITC action. She will pass her recommendations to Bush after the 60-day review period ending August 6.

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