Broadcom gives Verizon lifeline for cellphone ban
updated 04:10 pm EDT, Thu July 19, 2007
Broadcom Helps Verizon
Broadcom will offer Verizon a unique deal to let the US provider continue importing cellphones in spite of a trade ban, according to a deal unveiled today. Although the block put in place by the International Trade Commission directly touches on allegedly infringing Qualcomm patents used by many of Verizon's phones -- effectively banning new models from shipping to the US -- Broadcom has said it will grant a special license to allow the new devices to reach the carrier. Under the deal, Verizon will pay $6 for every cellphone or notebook data card that can use EVDO Internet access but will not have to pay more than $40 million per calendar quarter and will be capped at $200 million regardless of the ban's duration.
The two firms have also agreed to enter into a new alliance which will see both develop and launch Internet networking, phone, and GPS-related hardware that uses Broadcom's hardware, making sure that any Verizon-specific hardware is not subject to the disputed Qualcomm patents. Neither company has detailed what may happen to licensing royalties should a presidential order cancel the ban before August 6th. Conditions of the alliance in a post-ban environment were also kept private.
