Judge: Qualcomm Guilty of 'Litigation Misconduct and Concealment'
By Scott M. Fulton, III | Published August 7, 2007, 6:27 PM
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Judge Brewster's finding cites the testimony of Qualcomm staff engineer Christine Irvine, who just last January testified under oath that Qualcomm wasn't even a member of JVT. When asked whether Qualcomm should have attended its meetings, Irvine responded, "Qualcomm is not aware of any attendance to any JVT meetings."
The judge showed zero mercy, writing: "The falsity of Ms. Irvine's testimony is now revealed as blatant. As detailed above at length, Qualcomm produced over one hundred e-mails post-trial related to Qualcomm's participation in the JVT and attendance of JVT meetings, the vast majority of which were received or sent by Ms. Irvine."
Later, his ruling cites the testimony of another Qualcomm engineer, James Determan, who said under oath that he did not know whether he was personally a member of JVT. E-mails uncovered during discovery showed that not only was he a member, he was a paying member ($800). Though he did not personally attend JVT meetings, he did receive e-mails from representatives who did, briefing him on their minutes and subject matter.
Then Judge Brewster lays into Qualcomm's counsel, formally accusing its legal team of misconduct. One example of the "stonewalling" he found on Qualcomm's part comes from its attorney's response to a request for evidence from Broadcom, objecting in several parts to its phraseology. One such objection would attempt to postpone the entire discovery process in order to address Qualcomm's wish that its brand name be referred to in all-caps ("QUALCOMM"), the way it appears in its PR brochures.
"QUALCOMM objects to the term 'Qualcomm Patent' as vague and ambiguous," read one of its objections, "and instead will refer to the 'QUALCOMM Patents-in-Suit."'
Four other objections individually called into question Broadcom's use of the terms "person," "identify," "relevance," and "related" in its requests as being "vague, ambiguous, unduly burdensome, overly broad, and requiring information not within [Qualcomm's] possession, custody, or control."
"Qualcomm counsel's discovery responses demonstrate that they were able to locate with alacrity company records from December 2003 forward and find four or more Qualcomm employees participating in proceedings of the JVT," Judge Brewster wrote. "Yet inexplicably, they were unable to find over 200,000 pages of relevant emails, memoranda, and other company documents, hundreds of pages of which explicitly document massive participation in JVT proceedings since at least January 2002. These examples of Qualcomm counsel's indefensible discovery conduct belie counsel's later implied protestation of having been 'kept in the dark' by their client."
BetaNews asked AR Communications' new senior vice president - and our long-time friend and analyst - Carmi Levy to comment on the implications of these last few days for Qualcomm.
"Qualcomm's long-term strategy has been to milk as much as possible out of the CDMA standard," Levy told us this afternoon. "It owned it, it licensed it to everyone else, and Qualcomm has ridden that cash cow for as long as it has possibly been able to.
"The flip side of that," he continued, "the longer you hold onto a standard and the more you resist the evolution of successive standards, then the more likely it is that you actually apply the brakes to the overriding market. So in many respects, the overall American wireless market has not moved as rapidly towards 3G, largely as a consequence of actions like near-monopolies like Qualcomm, because it's been in Qualcomm's long-term best interests to keep CDMA handsets and infrastructure flowing to the American public for longer, and not invest in follow-on technologies that might put that monopoly at risk."
"The world is rapidly moving to 3G and beyond, and virtually every other market outside of North America pretty much has us beat in terms of bringing next-generation infrastructure and services that run on top of them, to market. And that's not going to change as long as we have companies like Qualcomm holding on for dear life to intellectual property that they've essentially used to strangle the market for the life of the cell phone industry."
This is another shameful example of just how corrupt and underhanded big business can become, and how bad some lawyers are.
Those lawyers give weasels and snakes a bad name!
To me, this is a prime example of a) corporate greed, b) patents are misused to beat people over the head legally, and c) how not having a unified open standard that doesn't belong to any one entity within an industry that provides such a widely used public service (cellphones,communication networks, etc), is a bad thing.
Let the companies all come together on standards, hammer out the ground rules and product specifications, and then fight out the real profit/innovation wars by producing competing products on those free open specs. OR, a wide body that collects royalties for technology and spreads it amongst those who contributed to the specs is ok too (like DVD Forum or similar "licensing" body), at least one company doesn't control everything.
IMHO, when you have a single company controlling a market like this, be it software, hardware, cell phones, radios, whatever, you have the atmosphere for someone to inhibit innovation, exert undue influence on the market, keeping costs high and things in a rut. It's the same as a monopoly to most people.
The author's right: We in the USA are constantly held hostage in markets by corporations who feel that they can leave an infrastructure in place, and milk it for all its worth. They won't adapt, change, or update themselves to keep up with the rest of the world. Instead, they'll let things get to the point of obsolescence and then try to justify jacking prices up when they are finally forced (through consumer pressure)to update and lay new infrastructure, when the updates have been more than paid for over the long term milking that the public has put up with. Maintenance doesn't take up all your profits, otherwise you wouldn't last long enough to even expand your operations.
Another great example of this is broadband access to the internet. I've been in 2 separate places in the last year where the cable company's definition of "blazing fast high-speed internet access" is a measly 1.5mbit down and 256k up. It's rediculous at this time to call that fast. People have 3G cellphones that are faster than my home internet connection! Places across the pond have 20, 30, and even 100mbit speeds directly to the house, with uncapped upstream!
Look around, folks, companies in general will not update their systems and provide better products and new services without pressure from the consumers.
Look at how long AT&T had a monopoly in the telephone handset market, and how it took a court decision just to allow people to have their *own* telephone devices instead of renting them from AT&T!
Something has to be done in Corporate America to change their mindset of "greed-milk-squeeze-bilk" and "procrastinate on evolving as long as we can". That something is the consumers have to really start massively voting with their shareholder stock and purchasing power.
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|All that are involved in this should be publicly beheaded.
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|I hope that the members of their legal team are not only disbarred, but also tried and convicted and placed in prison. The individuals who lied under oath should spend time in prison as well and perhaps even the heads of Qualcomm should be spending a few years behind bars as well.
Not only for punishment for their deplorable behavior, but also as a witness to other attorneys and companies to put them on notice that this type of behavior is no longer going to be allowed.
These people are a disgrace not only to corporations everywhere, but to Americans in general. They have allowed their greed to consume them at the detriment of all others.
I don't know how legal it is, but I'd confiscate all of their assets and sell everything off and use the proceeds to upgrade the infrastructure in this country - to make amends for what they have done.
Until we start punishing the criminals, they are going to continue to be criminals and others will do likewise because they will see that there is no real "punishment".
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|Sounds to me like Qualcomm is headed for the s***can..
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