To: Craig Schilling who wrote (7316 ) 1/20/1998 4:12:00 PM From: Caxton Rhodes Respond to of 152472
repeated news, favorable spin. ****Qualcomm Wins Round In Q Phone Suit With Motorola 01/19/98 Newsbytes, Monday, January 19, 1998 at 15:08 SAN DIEGO, CALIFORNIA, U.S.A., 1998 JAN 19 (NB) -- By Bob Woods, Newsbytes. Qualcomm Inc. [NASDAQ:QCOM] claimed another victory in its legal battle with Motorola Inc. [NYSE:MOT], in what could be called "Q Phone v. StarTac." Monday, Qualcomm announced that an appeals court agreed with a lower court to deny a request by Motorola for a preliminary injunction against Qualcomm's production of its personal communications services (PCS) Q Phone. While they have not yet seen the court order, Qualcomm officials said they were "delighted" with the US Court of Appeals for the Federal Circuit decision for the company. Motorola, predictably, said it was "disappointed" by the court's decision. But company officials said they were confident that it will win, once discovery is complete and all the facts are considered. At trial, Motorola expects to show that the appearance of the "Q" phone infringes Motorola's design patents and trade dress and that Qualcomm infringes other utility patents. Qualcomm ramped up production of the Q Phone, based on the lifting of an earlier temporary restraining order and denial of a preliminary injunction by the US District Court for the Southern District of California (Newsbytes, Apr. 25, 1997). At the time, Motorola said it was disappointed with the decision -- one it believed allowed Qualcomm to produce a "copycat" of Motorola's StarTac. At the time, the court found there were "significant" differences between the Q Phone and the StarTac, and that Motorola is not entitled to "monopolize" a shape like a clamshell phone. Both the StarTac and Q Phone use a basic clamshell design, Newsbytes notes. But the court last April ruled that "the Q Phone presents a sleeker, streamlined appearance as compared to the box-like appearance of the StarTac design patent." Motorola appealed last April's decision, and the appellate court heard oral arguments last week. Part of Qualcomm's case against Motorola comes from Qualcomm's claim that a Motorola engineer had secretly acquired from Qualcomm and Motorola subcontractor Shieldmate Robotics a plastic housing of Qualcomm's Q Phone (Newsbytes, Aug. 19, 1997). A Qualcomm spokesperson told Newsbytes last year that her company did not know about the incident until the case began. "Apparently, a Motorola engineer pocketed the housing during a meeting with Shieldmate while a Shieldmate employee was out of the room and then took it back to Motorola," the spokesperson. Last April, Motorola with regret announced the phone housing was taken from a Shieldmate desk and admitted immediate supervisors did not take appropriate action. "These people have been suspended until further disciplinary action is determined," stated the official Motorola response. Reported By Newsbytes News Network: newsbytes.com .