Patent infringement dispute settled

PCTEL has settled its patent infringement lawsuit with Broadcom Corp over "soft modems", a technology pioneered by PCTEL in the 1990s, and other voice-band modem technology.

PCTEL has settled its patent infringement lawsuit with Broadcom Corp over "soft modems", a technology pioneered by PCTEL in the 1990s, and other voice-band modem technology.

Under the agreement, Broadcom will receive a licence to all of PCTEL's modem patents, including those related to V.92 technology, and other patent applications recently acquired from Conexant Systems, as well as a conditional covenant not to sue under PCTEL's remaining patents.

Additionally, PCTEL will assign to Broadcom two key patents relating to Ethernet technology.

Broadcom has agreed to become a PCTEL Segue roaming client customer.

Broadcom will make a lump sum payment to PCTEL for past damages and the two assigned patents.

Broadcom will also pay to PCTEL patent royalties for sales after 2004.

PCTEL will also receive a licence to Broadcom's voice band modem patents.

Broadcom's purchase of Segue software will occur in 2004.

Under the settlement agreement, PCTEL will dismiss its patent infringement lawsuit against Broadcom.

PCTEL will receive $3.5 million in total consideration under the various agreements.

"We are pleased to have this matter behind us", said Jeff Thermond, Vice President and General Manager of Broadcom's Home and Wireless Networking Business.

"This should resolve all current and potential disputes regarding PCTEL's patent portfolio and allow us to focus on the operations of our business and its future.

In the process, we are adding significantly to our growing portfolio of communications patents".

Jeff Miller, PCTEL's Vice President of Business Development and Licensing, said: "We are delighted to have Broadcom as both a licensee and a customer; we look forward to the opportunity to provide value-added Wi-Fi software to them.

This settlement also simplifies our litigation strategy and permits us to focus on parties with significant past and future liability".

PCTEL filed a patent infringement suit against 3Com Corporation in March of this year and then filed additional complaints against Lucent Technologies, Agere Systems, US Robotics and Broadcom in May.

The lawsuits claim that all these companies infringed technology that enables critical analogue modem functionality.

PCTEL maintains more than 115 patents and patent applications.

In addition to its modem patents, the company has patents or applications related to DSL modems and wireless networking.

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