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To: METMAN who wrote (23524)	2/27/1999 2:31:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

IPR, Tug Of War> From the March 1, 1999 issue of Wireless Week IPR Tug Of War By Brad Smith Lawyers for Ericsson Inc. and Qualcomm Inc. last week began the first phase of their legal arguments over intellectual property rights in a federal courtroom in east Texas, even as there were hints there could be a peaceful resolution before the case reaches a jury. The two wireless manufacturers sued each other in U.S. District Court in Marshall, Texas, over several disputed patents involving code division multiple access technology. The case is the legal backdrop for a global political and standards body argument over a possible converged network air interface. A jury is scheduled to start hearing the suit April 6, but lawyers were in court last week for a "Markman hearing" to resolve the interpretation of patent claims. The hearing is named for a patent infringement case decided by a federal court that set a crucial legal standard. The hearing can be vital in patent cases because the judge determines the scope of the claims that will be decided in the full trial. The judge's ruling, expected in two to four weeks, could affect what the jury will be allowed to determine. Larry Lyles, vice president and general counsel for Ericsson, called the Markman hearing a very important development in the case. The Texas suit, originally filed in 1996, focuses on eight CDMA patents that Ericsson said Qualcomm infringed upon, including one covering "soft handoffs." The suit's outcome, however, is expected to have a much wider impact on the industry than those few patents. If the suit can be resolved amicably, many analysts believe there is an increased possibility that the third generation of wireless networks would use the same standard, as well as allow migration of existing networks to the new standard. Qualcomm and Ericsson have been on opposite sides of 3G standards in the past, even though both back a form of CDMA technology. Officials for both companies told Wireless Week that they would like to settle the matter before it gets to the jury. "We're talking to Qualcomm," said Ericsson spokeswoman Kathy Egan. "We would like to have a negotiated settlement, but we also believe that we have a firm case if it goes to trial. No one wants to go to court." Irwin Jacobs, chairman of Qualcomm, is optimistic that the suit can be resolved out of court and also that the political and standards argument over a converged 3G standard can be settled as well, according to company spokeswoman Christine Trimble. If Qualcomm were able to use Ericsson's GSM patents to manufacture handsets, it seemingly would gain entry into the huge marketplace, but some analysts said the San Diego manufacturer would have to start from ground zero. "They have no distribution and no brand name recognition in the GSM world," said Jane Zweig, executive vice president at Herschel Shosteck Associates Ltd. Ericsson's well-established global presence and distribution system would give it a strong CDMA launch pad, she said. Zweig said she believed Ericsson and Qualcomm both "recognize that it will be very expensive to litigate this and it will just slow the industry down. It's not a matter of who has the better or best technology; it never has been."