Qualcomm ban hits 3G handset imports

Qualcomm is running out of options as a trade ban goes into effect that will prohibit the import into the US of any 3G handset using Qualcomm chips that have been found to infringe on patents owned by rival Broadcom.

US President Bush's administration said on Monday that it would not veto a decision handed down in June by the International Trade Commission (ITC) that would prohibit the import of mobile phones using the chips that infringe on Broadcom patents.

The ban will go into effect starting on Tuesday.

But Qualcomm said on Monday evening that it's not giving up. The company still maintains that Broadcom's patents are not valid. And it said it's still working on an appeal and stay request with the Federal Circuit Court of Appeals. Last month, the appeals court said it didn't have jurisdiction in the case.

Qualcomm also said it is working closely with its customers and the operators on implementing new software that will provide a work-around to the patents.

Paul Jacobs, Qualcomm's CEO, said in a statement: "We will pursue all legal and technical options available to us to minimise the impact of the ITC order on consumers, our customers and the entire wireless industry."

Broadcom executives said they saw the Bush administration's decision to stay out of the patent dispute as a victory for all companies trying to protect intellectual property.

The ban would be particularly tough for all the major US mobile phone operators, which during the past several years have spent billions of dollars deploying their 3G networks.

Marguerite Reardon writes for CNET News.com