Sunday, March 18, 2007

When You Lose the First, Settle the Remainder

Settlement fever is in the air between Broadcom and its aggressive competitor, Qualcom. See, Qualcom Sues Broadcom Settle Another Patent Dispute. These two telecommunication giants have been litigating since Carter was a peanut farmer (just kidding!). Recently, a federal judge in San Diego, California, found in favor of Broadcom in one of its many ongoing legal Intellectual Property and Patents claims with Qualcom, by ruling that the "Broadcom...did not infringe on two Qualcom patents for video compression technology." How surprising now the two sides have decided to settle other pending court claims.

If you lose the first, the indicator, all others are probably destined to fail on the same continuum. This appears to be the case here. Maybe these two should consider an Acquisition or Merger (or maybe if this fails a hostile takeover)! But either way by the time these two cease their adolescent court battling, I suspect they'll be vividly familiar with each others technologies; thus, leaving them no other choice than an involuntary merger. They need to protect those technology secrets somehow. It's obvious Broadcom has the competitive edge or if they don't, they know what Qualcom knows, which apparently is not much of a 'Patented', 'Intellectual' secret in today's capitalistic marketplace.

More to come!

BRIAN C. MARQUIS

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