The Delaware Court of Chancery has rejected Qualcomm's claim that TI had violated a licensing agreement between the two parties. Under the latest ruling, TI will be able to continue production of CDMA (Code Division Multiple Access) chips that adopt Qualcomm's technology without paying royalties.

 

As early as at the end of 2000, Qualcom and TI had signed a cross-license agreement, which allows TI to use Qualcomm's patented CDMA technology for handset chips. TI would provide transistor technology in exchange. However, the collaboration fractured as TI announced its intention to produce CDMA chips for Nokia in May 2003, and legal action was immediately brought up by Qualcomm in June.

 

Backed by ST Microelectronics and Nokia, TI rolled out CDMA chip solutions in June 2004 to expand presence in the CDMA chip market. Now with the ruling in its favor, TI appears to be on a more smooth track into the CDMA market. Qualcom has decided to appeal.