Bloomberg News

Emulex Infringed Two Broadcom Patents in Chips, Judge Rules

December 19, 2011

(Updates with Emulex comment in fifth paragraph.)

Dec. 19 (Bloomberg) -- Broadcom Corp., the biggest maker of chips for set-top boxes, said a federal judge ruled that Emulex Corp. infringed two of its patents.

The infringing products include semiconductors and four channel switches, Irvine, California-based Broadcom said in a statement today. Broadcom abandoned an offer to buy Emulex two years ago.

“We are pleased with the court’s decision and to have prevailed in our case against Emulex,” Art Chong, Broadcom’s general counsel, said in the statement.

U.S. District Judge James Selna in Santa Ana, California, denied Emulex’s motion for summary judgment, according to a Dec. 15 entry on the court’s docket.

“Broadcom issued a press release related to the litigation between our companies but it did contain much news beyond what we announced in our press release on Oct. 13, 2011,” Emulex said today in an e-mailed statement. “The jury announced its results in October, and now the judge has confirmed most of the results.”

Broadcom asked the court to issue a permanent injunction that would prohibit the sale of the infringing products, the company said in the statement.

“We will work with our suppliers to implement design changes if necessary for the SerDes modules included in Emulex integrated chips,” Emulex said in its statement. “We plan to take appropriate steps to ensure continued product supply.”

In July 2009, Broadcom gave up its two-month effort to acquire Emulex after that company’s board rejected the offer as inadequate. Emulex filed the lawsuit in November 2009.

Broadcom fell 98 cents, or 3.4 percent, to $27.74 in New York. Emulex fell 45 cents, or 6.4 percent, to $6.62 in New York.

The case is Emulex v. Broadcom, 09-01310, U.S. District Court, Central District of California, Southern Division (Santa Ana).

--Editors: Glenn Holdcraft, Andrew Dunn

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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