Qualcomm shares rose more than 3% yesterday after a court said it would stay a government ban on the US import of phones using Qualcomm chips that were found to infringe a Broadcom patent.
The stay from the Court of Appeals for the Federal Circuit, announced Wednesday, allows phone makers to import devices with the infringing chips pending Qualcomm's appeal of the US International Trade Commission's 7 June ban on US sale of new high-speed wireless phones including the infringing chips.
Qualcomm shares were up $1.33 at $39.20 on Nasdaq where Broadcom shares were up 8c at $35.45.
While Qualcomm is still banned from importing the infringing chips itself, analysts said this does not hurt the company because its chips are made overseas and then shipped to handset makers who import them to the US.
"We do not view this as significant because Qualcomm does not import chipsets directly into the US," UBS analyst Maynard Um said in a note to clients.
Investors see the multiple legal battles between Qualcomm and Broadcom eventually leading to technology licensing agreements between the companies, with the legal winner having the upper hand in setting licence terms.
Um said the stay could reduce Broadcom's leverage in its battles with Qualcomm.
The stay, announced on Wednesday, allows phone makers such as Motorola, Samsung Electronics and LG Electronics to keep importing handsets that would otherwise have been affected by the ban.
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