14 DAY TRIAL // Broadcom Corporation and Verizon Wireless made public a licensing agreement which allows Verizon to import and sale devices that are currently subject of dispute between Qualcomm Incorporated and Broadcom and have been banned from the U.S. by ITC (International Trade Commission).
The licensing agreement enables Verizon to commercialize the latest mobile devices and grants Broadcom to receive $6 from Verizon for each PDA, 1xEV-DO handset or data card sold. Verizon will also have license to six Broadcom patents under litigation between Broadcom and Qualcomm. Additional terms or conditions of the agreement have not been disclosed.
Lowell C. McAdam, President and Chief Executive Officer of Verizon Wireless, said: "We are pleased to have worked out an agreement with Broadcom to ensure continued delivery of new and innovative products to our customers. A market-based solution, like the one our two companies have announced today, is the most effective way to resolve these kinds of intellectual property issues."
"Broadcom welcomes the opportunity to work with Verizon to ensure that next generation cell phones and personal digital assistants operating on the Verizon Wireless network will continue to flow into the United States," declared Scott A. McGregor, President and Chief Executive Officer of Broadcom. "This agreement reflects not only the strength of our intellectual property portfolio in the wireless space but also Broadcom's commitment to work constructively with other industry players to resolve I.P. disputes and forge important new business relationships."
Verizon and Broadcom also announced they have perfected a broad-based strategic alliance. Dick Lynch, the new Chief Technology Officer of Verizon, said: "We will pursue a broad-based initiative with Broadcom involving new mobile device chipsets and other products, including Bluetooth and wireless LAN solutions, optical network solutions, Multimedia over Coaxial Cable (MoCA) devices, GPS location technology, and DSL and fiber network components including set-top boxes, and pursue technology cross- licensing opportunities. Our mutual goal is to increase the availability of new, competitive products and services for our customers."