Verizon and Broadcom reach settlement

Verizon and Broadcom have been duking it out over the last year or so, going back and forth over Verizon’s use of Qualcomm’s copyright infringing chips in many of their subsidized handsets. Verizon will shell out $6 per handset, up to $200 million. That’s a pretty significant chunk of change. The per handset charge will allow Verizon to continue to use the Qualcomm sourced phones, but effectively brings “The Network” into Broadcomm’s corner, and takes away Qualcomm’s biggest ally. Qualcomm was offered a similar deal by Broadcomm last month. Had they taken the bait and cut their losses they could have avoided next month’s hearing to determine whether or not the company will be allowed to continue to do business. They gambled, chose not to take the deal, and left their fate up to Federal Circuit Court of Appeals. Tough luck, guys.


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