Qualcomm Sues TI
Suit alleges TI disclosed information about a patent agreement the two companies signed in December 2000.Cell phone chip maker Qualcomm Corp. on Friday announced that it has sued competitor Texas Instruments Inc. Filed on Friday in a Delaware state court, the suit alleges breach of a Patent Portfolio Agreement that the companies signed in December 2000, which gave the two companies access to each others patents. Qualcomm alleges that TI disclosed information about the agreement. On May 15 2003, TI announced plans to sell chips based on the CDMA 1X2000 high-speed cell phone network standard through a joint collaboration with Nokia Corp. and STMicroelectronics NV. At the time, TI officials voiced the importance of open standards and competition in the cell phone market an obvious jab at Qualcomm.
While TI bests Qualcomm in overall cell phone chip sales, Qualcomm owns the market and the majority of patents for CDMA technology, which is popular in Asia and North America. In the United States, Verizon Wireless Inc. and Sprint PCS Group run networks based on CDMA.