DOW JONES NEWSWIRES
Broadcom Corp. (NASDAQ-NMS:BRCM) (BRCM) said the U.S. International Trade Commission rejected GPS chip maker SiRF Technology Holdings Inc.'s (NASDAQ-NMS:SIRF) ( SIRF (NASDAQ-NMS:SIRF) ) claims that two of its GPS patents were infringed by Global Locate, a company Broadcom (NASDAQ-NMS:BRCM) acquired in July.
ITC Administrative Law Judge Paul Luckern issued his initial determination Friday after a six-day trial in March in Washington, D.C.
The chip manufacturer's claims against SiRF (NASDAQ-NMS:SIRF) went to trial in the ITC in April, and an initial ruling in that case, heard by Administrative Law Judge Carl Charneski, is expected by Aug. 8.
SiRF (NASDAQ-NMS:SIRF) , which makes GPS chipsets for personal navigation devices, originally filed four patent infringement claims against Global Locate in the ITC but dropped two before trial. Global Locate filed six claims of patent infringement against SiRF (NASDAQ-NMS:SIRF) in the ITC and four claims in U.S. District Court before its acquisition by Broadcom (NASDAQ-NMS:BRCM) . Last month, Broadcom (NASDAQ-NMS:BRCM) filed four more separate claims against SiRF (NASDAQ-NMS:SIRF) in U.S. District Court.
Shares of SiRF (NASDAQ-NMS:SIRF) , which reported a third-quarter loss of $16.1 million last month, have fallen 79% from their 52-week high Nov. 1. They were at $6.36, down 1 cent, in after-hours trading.
The company has suffered from a confluence of events that can happen when a technology becomes rapidly popular in a short time, then competition and market forces join together to create a situation in which a company can't maintain its momentum.
SiRF's (NASDAQ-NMS:SIRF) strategy had worked well because its customers needed chips specifically designed for GPS functions. However, larger chip makers, such as Broadcom (NASDAQ-NMS:BRCM) , began making acquisitions that allowed them to develop microchips that combined GPS technology with other communication functions on a single chipset. The result was that device makers can buy fewer chipsets that provide more functionality for their devices, making it easier for companies such as mobile phone makers to add GPS technology to their products and keep down the amount of components used inside the phones.
Broadcom (NASDAQ-NMS:BRCM) shares closed Friday at $25.79 and rose 15 cents in after-hours trading.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; kathy.shwiff@dowjones.com
(END) Dow Jones Newswires 06-13-08 1939 Copyright (c) 2008 Dow Jones & Company, Inc.
