Broadcom says Qualcomm is importing chips against ban

The U.S. International Trade Commission said it will investigate whether Qualcomm is complying with a ban that prohibits it from importing certain chips into the U.S.
The investigation is the result of a complaint that Broadcom filed with the U.S. ITC. Qualcomm is importing chips that employ a work-around of a Broadcom patent that the court ruled Qualcomm infringes. Broadcom alleges that the new technology also infringes its patent.

The investigation is the latest chapter in a long-running dispute between the two chip companies. In July, the ITC ruled that Qualcomm was infringing on Broadcom patents. In a very rare decision, the ITC forbade the import of phones that included future versions of certain Qualcomm chips, rather than all the offending chips, because the commission decided that would have unduly damaged the economy.

However, the U.S. Court of Appeals for the Federal Circuit has since stayed that ruling.

One attorney suspects that Broadcom's most recent complaint to the ITC is an effort to essentially overrule the appeals' court stay.

"This enforcement proceeding represents a crafty way for Broadcom to get around the court's stay and go directly to the ITC to give some teeth to the remedy provided by the ITC," said Lyle Vander Schaaf, an attorney at Bryan Cave and a former ITC attorney.

If the commission decides in Broadcom's favor, Qualcomm could face millions of dollars in penalties, he said.

Broadcom said it is seeking fines and additional orders against Qualcomm.