Texas Instruments Sues Qualcomm Over Handset Pact Sep 24, 2003

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Chipmaker Texas Instruments Inc. filed suit against Qualcomm Inc., the wireless telephone technology company, alleging breach of contract in a confidential handset licensing agreement.

Texas Instruments brought its action after receiving reports Qualcomm was offering discounts to handset makers only if they bought CDMA chipsets from the wireless technology provider, Joseph Hubach, the chip maker's general counsel, said in a statement.

A spokeswoman for Texas Instruments said the company could not discuss its lawsuit in greater detail because of the terms of its confidential agreement with Qualcomm.

Texas Instruments and Qualcomm reached an agreement in December 2000, allowing each company to supply integrated circuits for all wireless standards using the other's technology through 2005.

Qualcomm owns most of the patents to CDMA wireless transmission standard, the leading wireless technology in the U.S. and Asia, and faces increasing competition from Texas Instruments.

A spokeswoman for Qualcomm said the company had no comment and had not yet seen Texas Instrument's complaint.

Texas Instruments, the No. 1 maker of semiconductors for mobile phones, asked the court to require Qualcomm to adhere to terms of the cross-licensing agreement and to prohibit Qualcomm from making false or misleading statements about the companies' respective rights and obligations.

The lawsuit, which Texas Instruments said was filed in Delaware Chancery Court, marks continued fighting between the two companies.

Qualcomm filed suit against Texas Instruments on July 25 in the Delaware court over the confidentiality of the agreement. On Sept. 8, Texas Instruments filed a motion to have Qualcomm's suit dismissed. The court has not yet ruled on that motion. (Reuters)

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