Verizon Wireless Steps Into The Patent Fray

We touched on the Broadcom-Qualcomm dispute earlier this month by taking a look at both sides and identifying the two extremes – Broadcom’s desire to see a more strictly enforced ban on patent-infringing cell phones, versus Qualcomm’s claim that the existing ITC ban tampers innovation and consumer choice. In the end, we expected to see a resolution of some sort.

Today, Verizon Wireless took a unilateral step towards crafting such a resolution.

The carrier announced a licensing agreement with Broadcom that will allow Verizon Wireless to continue to sell devices containing the disputed microchips. As a result, Verizon will stop supporting Qualcomm in its ongoing fight against the ban.

The deal Verizon Wireless accepted appears to be the same one Broadcom previously offered to Qualcomm: Broadcom will collect a $6 licensing fee directly from Verizon for each unit sold. For its part, Verizon Wireless now has access to products which rely on the disputed patents – something its competitors can’t, for the time being, say.

Amid reports that Qualcomm is working together with Sprint on a “work-around,� today’s news is especially interesting. Will the other carriers follow suit, and make Broadcom the winner here by signing similar licensing agreements? Or does Qualcomm still have the strategic relationships in place to stand firm?