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Ban Halts Release of New 3G Phones

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The Entire ITC ORDER (Analysis will come soon. )

nextel18

Jun 7, 2007, 8:04 PM
June 7, 2007
News Release 07-062
Inv. No. 337-TA-543
Contact: Peg O'Laughlin, 202-205-1819


ITC ANNOUNCES REMEDY IN BROADCOM/QUALCOMM INVESTIGATION

The U.S. International Trade Commission ("ITC" or "Commission") today announced the remedial orders it will issue in connection with its section 337 investigation concerning Baseband Processor Chips and Chipsets, Transmitter and Receiver (Radio) Chips, Power Control Chips, and Products Containing Same, Including Cellular Telephone Handsets (337-TA-543).

The chips and chipsets at issue are used in handheld wireless communications devices, including cellular telephone handsets, that are capable of operating on so-called third-generation ("3G") cellular telephone networks, i.e., EV-DO (...
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katrina

Jun 8, 2007, 6:44 PM
Ok so, it says manufacturers can no longer import these Qualcomm chips and cannot import phones that use them; but from what I can tell, it doesn't mention the following scenarios:

1) A phone manufacturer imported 3 zillion Qualcomm chips before the deadline then manufactures the phones in the US using these chips at their leasure.

2) Qualcomm builds a chip manufacturing plant in the US to circumvent the import restriction
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digitmasher

Jun 8, 2007, 7:02 PM
I'm going to take a gander and say that the answer to both questions is one of the same.
The ban isn't simply on handsets equipped with a Qualcomm chip entering the U.S. from outside the country but any and all Qualcomm chips regardless of origin.
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nextel18

Jun 9, 2007, 2:03 PM
It kind of addresses it though even though it might be tough to follow.

1. It will be ok if the companies import phones and pdas that use 3G chipsets from Qualcomm before or on that date. Remember they can still send phones and pdas that do not use any 3G chipsets.
2. Yea, this won’t work because it will still be a ban. Majority of these companies work with outside parties.
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katrina

Jun 9, 2007, 2:09 PM
nextel18 said:
1. It will be ok if the companies import phones and pdas that use 3G chipsets from Qualcomm before or on that date. Remember they can still send phones and pdas that do not use any 3G chipsets.


But I'm not talking about importing phones, I'm talking about manufacturing new models of phones in the US with Qualcomm chips that were imported before the ban became effective, since the ban seems to only deal with imports, not demestic manufacture.


2. Yea, this won’t work because it will still be a ban. Majority of these companies work with outside parties.


But what I am saying is the ban seems to only cover imported chips and handsets and doesn't mention things ...
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nextel18

Jun 9, 2007, 2:25 PM
Hmm. What a great question when it comes to domestic manufacturing, however, a lot of the manufacturers out there do not do business domestically rather outside this country because of the whole situation with outsourcing and cheaper costs. In fact, majority of the phones and Qualcomm’s chips are made outside this country so if they were to makes these chips and handsets domestically the prices for consumers would go way up on the price itself and on the monthly fee for those services.
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katrina

Jun 9, 2007, 2:28 PM
Yep, it would certainly be way more expensive but it could be a way around the ban if it drags out and they really want to release something new. I think both Nokia and Motorola do a certain amount of domestic manufacturer (maybe only a small percentage of their total)
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nextel18

Jun 9, 2007, 2:36 PM
Yea that won’t be the most economical thing to do because it would take a lot of time both on the R&D and the sampling as well as to build/produce chips and then they have to talk to the vendors involved from the manufacturers to the wireless carriers. The only thing that should be done here besides for the appeals and veto processes is for Qualcomm to have a workaround solution that wont violate Broadcom’s patents, however, Broadcom could say to the courts that this could be also problematic and could also violate the patents. This was the similar situation with NTP and RiMM whereas NTP mentioned that same clause to the courts and RiMM had no other solution besides to pay that settlement. Along with that problem when it comes with legal iss...
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katrina

Jun 9, 2007, 2:39 PM
Just as a side note for the record, I hate NTP much more than I hate Qualcomm LOL
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nextel18

Jun 9, 2007, 2:45 PM
I only hate NTP.

🤣
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