Quote of the day: focusing on the big picture
We were concerned about the possible disruption to our business and more importantly to our customers.
Qualcomm General Counsel Donald Rosenberg, commenting on Qualcomm’s decision to pay rival Broadcom Corp $891 million over four years to settle a patent case over handset technology.
The cost of litigation is high and multifaceted.
It’s nice to see the parties realize that it makes more business sense to put the controversy behind them. Cross licensing their respective technology to each other and avoiding the cost of a continued legal battle (estimated at $100 million annually for Qualcomm and $50 million for Broadcom) was rewarded by the market. Qualcomm’s shares rose $1.81 on the news and Broadcom’s rose 16 cents.
The benefits of settlement are many.
Tags: Broadcom, cross licensing, Qualcomm, settlement