Leading mobile wireless technology companies call on European Commission to investigate Qualcomm's anti-competitive conduct

Oct 28, 2005, 01:00 ET from Texas Instruments Incorporated from ,Broadcom Corporation from from

    BRUSSELS, Belgium, Oct. 28 /PRNewswire-FirstCall/ -- Broadcom
 (Nasdaq: BRCM), Ericsson (Nasdaq: ERICY), NEC (Nasdaq: NIPNY), Nokia
 (NYSE:   NOK), Panasonic Mobile Communications and Texas Instruments (NYSE:   TXN)
 have each filed Complaints to the European Commission requesting that it
 investigate and stop Qualcomm's (Nasdaq: QCOM) anti-competitive conduct in the
 licensing of essential patents for 3G mobile technology.
     The companies state that Qualcomm is violating EU competition law and
 failing to meet the commitments Qualcomm made to international standard bodies
 around the world that it would license its technology on fair, reasonable and
 non-discriminatory terms.  Absent these commitments, the WCDMA 3G standard
 would not have been adopted.  The companies say that Qualcomm is infringing
 these rules by:
 
      *  trying to exclude competing manufacturers of chipsets for mobile
         phones from the market and preventing others from entering.  To this
         end, Qualcomm has committed a number of abuses, ranging from the
         refusal to license essential patents to potential chipset competitors
         on fair, reasonable and non-discriminatory terms to offering lower
         royalty rates to handset customers who buy chipsets exclusively from
         Qualcomm.
 
      *  charging royalties for its WCDMA essential patents that are excessive
         and disproportionate; in particular by imposing the same royalty rate
         on WCDMA 3G handsets as it does for CDMA2000 3G handsets despite the
         fact that Qualcomm has contributed far less technology to the WCDMA 3G
         standard than it has to the CDMA2000 standard.
 
     The companies believe that Qualcomm's anti-competitive behavior has
 harmful effects for the mobile telecommunications sector in Europe, as well as
 elsewhere, because carriers and consumers are facing higher prices and fewer
 choices.
 
 
                               Company Statements
 
     "Major telecommunications equipment companies on three continents are
 standing up and saying that Qualcomm's business practices are unfair,
 anticompetitive and ultimately illegal.  Qualcomm's illegal practices stifle
 competition and ultimately hurt the consumer."   David A. Dull, Senior Vice
 President, Business Affairs; General Counsel; and Secretary, Broadcom
 Corporation
 
     "Qualcomm committed to standard setting organisations that it would
 license its technology on fair, reasonable and non-discriminatory terms.  In
 spite of this and in breach of competition law, Qualcomm is charging excessive
 and disproportionate royalties.  This means ultimately that consumers may have
 to pay more than they should for their mobile handsets."
      Kasim Alfalahi, Vice President IPR Licensing and Patents, Ericsson AB
 
     "Qualcomm's anti-competitive licensing practices and excessive royalties
 are restricting innovation and the development of 3G mobile telephony to the
 detriment of consumer choice."
      Botaro Hirosaki, Senior Vice President, NEC Corporation
 
     "Intellectual property rights have an increasing role in business.  There
 are rules of law that apply to the licensing business, and patentees and other
 intellectual property rights owners cannot ignore them."
      Ilkka Rahnasto, Vice President, Intellectual Property Rights, Nokia
 Corporation
 
     "Panasonic Mobile Communications believes that Qualcomm is charging
 excessive and disproportional royalty rates in breach of EU competition law
 and industry requirements to offer licenses for essential patents on fair,
 reasonable and non-discriminatory terms."
      Haruo Suzuki, Director, Member of the Board, Panasonic Mobile
 Communications Co. Ltd.
 
     "Standards are established to guide the industry's technology development
 and provide a healthy environment for innovation and competition.  We believe
 Qualcomm has abused its licensing position in certain standards and has
 inhibited legitimate competition.  If this conduct goes unchecked, the risk is
 that consumers in Europe and around the world will pay higher prices for
 mobile phones and services and have less access to innovative products."
      Joe Hubach, General Counsel, Texas Instruments Incorporated
 
 

SOURCE Texas Instruments Incorporated; Broadcom Corporation; Ericsson AB; NEC
    BRUSSELS, Belgium, Oct. 28 /PRNewswire-FirstCall/ -- Broadcom
 (Nasdaq: BRCM), Ericsson (Nasdaq: ERICY), NEC (Nasdaq: NIPNY), Nokia
 (NYSE:   NOK), Panasonic Mobile Communications and Texas Instruments (NYSE:   TXN)
 have each filed Complaints to the European Commission requesting that it
 investigate and stop Qualcomm's (Nasdaq: QCOM) anti-competitive conduct in the
 licensing of essential patents for 3G mobile technology.
     The companies state that Qualcomm is violating EU competition law and
 failing to meet the commitments Qualcomm made to international standard bodies
 around the world that it would license its technology on fair, reasonable and
 non-discriminatory terms.  Absent these commitments, the WCDMA 3G standard
 would not have been adopted.  The companies say that Qualcomm is infringing
 these rules by:
 
      *  trying to exclude competing manufacturers of chipsets for mobile
         phones from the market and preventing others from entering.  To this
         end, Qualcomm has committed a number of abuses, ranging from the
         refusal to license essential patents to potential chipset competitors
         on fair, reasonable and non-discriminatory terms to offering lower
         royalty rates to handset customers who buy chipsets exclusively from
         Qualcomm.
 
      *  charging royalties for its WCDMA essential patents that are excessive
         and disproportionate; in particular by imposing the same royalty rate
         on WCDMA 3G handsets as it does for CDMA2000 3G handsets despite the
         fact that Qualcomm has contributed far less technology to the WCDMA 3G
         standard than it has to the CDMA2000 standard.
 
     The companies believe that Qualcomm's anti-competitive behavior has
 harmful effects for the mobile telecommunications sector in Europe, as well as
 elsewhere, because carriers and consumers are facing higher prices and fewer
 choices.
 
 
                               Company Statements
 
     "Major telecommunications equipment companies on three continents are
 standing up and saying that Qualcomm's business practices are unfair,
 anticompetitive and ultimately illegal.  Qualcomm's illegal practices stifle
 competition and ultimately hurt the consumer."   David A. Dull, Senior Vice
 President, Business Affairs; General Counsel; and Secretary, Broadcom
 Corporation
 
     "Qualcomm committed to standard setting organisations that it would
 license its technology on fair, reasonable and non-discriminatory terms.  In
 spite of this and in breach of competition law, Qualcomm is charging excessive
 and disproportionate royalties.  This means ultimately that consumers may have
 to pay more than they should for their mobile handsets."
      Kasim Alfalahi, Vice President IPR Licensing and Patents, Ericsson AB
 
     "Qualcomm's anti-competitive licensing practices and excessive royalties
 are restricting innovation and the development of 3G mobile telephony to the
 detriment of consumer choice."
      Botaro Hirosaki, Senior Vice President, NEC Corporation
 
     "Intellectual property rights have an increasing role in business.  There
 are rules of law that apply to the licensing business, and patentees and other
 intellectual property rights owners cannot ignore them."
      Ilkka Rahnasto, Vice President, Intellectual Property Rights, Nokia
 Corporation
 
     "Panasonic Mobile Communications believes that Qualcomm is charging
 excessive and disproportional royalty rates in breach of EU competition law
 and industry requirements to offer licenses for essential patents on fair,
 reasonable and non-discriminatory terms."
      Haruo Suzuki, Director, Member of the Board, Panasonic Mobile
 Communications Co. Ltd.
 
     "Standards are established to guide the industry's technology development
 and provide a healthy environment for innovation and competition.  We believe
 Qualcomm has abused its licensing position in certain standards and has
 inhibited legitimate competition.  If this conduct goes unchecked, the risk is
 that consumers in Europe and around the world will pay higher prices for
 mobile phones and services and have less access to innovative products."
      Joe Hubach, General Counsel, Texas Instruments Incorporated
 
 SOURCE  Texas Instruments Incorporated; Broadcom Corporation; Ericsson AB; NEC

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