| The Broadcom offer was made after they had won the ITC case, and obtained an exclusion order, after Qualcomm had lost the video compression patent case in Rudy Brewster's court, and faced $10 mil in attorney fees plus sanctions, and after Broadcom won the Santa Ana verdict(at that time doubled) that later resulted in Judge Selna's Injunction. In other words, Qualcomm's offer of $100 mil plus a royalty free cross license was based upon all of the outstanding damages, attorney fees, royalties, and work around costs, not simply upon an analysis of respective patent portfolios. Prior to litigation, a TI type license was offered, without the cash. Broadcom wasn't/isn't interested in negotiating a FRAND license, and has never negotiated in good faith. Handset royalties have been the custom and usage of the industry, whether under GSM or 3G. Broadcom, having no significant 3G essential IPR, instead decided to insist on ending Qualcomm's handset licensing business, which is and was tactical, rather than a good faith effort to bargain. |
