Motorola, Qualcomm Battle Over Patent
Motorola Inc. and San Diego-based Qualcomm Inc. are suing each other over patents for digital wireless phones, the fastest-growing products in the cellular industry.
Motorola claims that Qualcomm’s new Q phone infringes on patents for its popular StarTac and will file suit soon. Qualcomm said it sued Motorola this week, seeking a ruling that its palm-sized phone doesn’t violate the patents.
The suits come as Motorola loses its lead in the market for digital phones, which promise better quality and increased security. Qualcomm unveiled its lightweight Q phone earlier this week, and Ericsson and Nokia Oy are coming on strong with their own sleek products.
“It’s a race to the courthouse,” said Steven Glassman, partner at Kaye, Scholer, Fierman, Hays & Handler LLP in New York. “Qualcomm decided to beat them to the punch.”
Motorola said it wants an injunction to stop Qualcomm from making the Q phone, charging Qualcomm copied the design and promotional materials from Motorola’s successful product. Motorola said it may seek monetary damages.
“I’m not surprised that Motorola has taken issue, given the striking similarities to its premier cellular product,” said Bradley Williams, analyst at Legg Mason Wood Walker, who tested the Q phone and has used Motorola’s StarTac.
The layout of the buttons on Q, as well as the screen format and antennas, are very similar, Williams said.
Motorola shares rose $1.125 to close at $58.75 on the New York Stock Exchange, while Qualcomm shares plunged $3.25 to close at $59.375 on Nasdaq.
Schaumberg, Ill.-based Motorola said its suit was sparked by Qualcomm’s unveiling on Monday of the Q phone at the Cellular Telecommunications Industry Assn. show in San Francisco.
Motorola also charged that Qualcomm designed the Q phone while the companies were negotiating for licenses under Motorola’s patents on code-division multiple-access technology.
“Qualcomm led Motorola to believe it had no intention of copying Motorola’s products, but merely wanted to avoid inadvertent infringement,” said Wolf Pavlok, a senior vice president at Motorola’s cellular division.
Qualcomm disagrees.
“In our development of the Q phone, we followed our usual practice of verifying and checking existing patents,” said Harvey White, president of Qualcomm. “Our lawsuit seeks judicial confirmation that our judgment was correct.”
Qualcomm’s suit was filed in federal court in San Diego. Motorola declined to say where its suit will be filed.
