Broadcom accused Qualcomm, which holds more than 1,000 patents related to the company's Code Division Multiple Access (CDMA) technology, of offering its technologies as a basis for industry standardization only to quell competition with tough licensing deals.

The suit represents Broadcom's latest frustration with the San Diego-based wireless company. Earlier this year, Broadcom filed two suits against Qualcomm, alleging the company violated 10 Broadcom patents. Qualcomm claims Broadcom's cases have no merit.

Patent Exploits

At the foundation of Broadcom's suit is its claim that Qualcomm essentially has been using standards organizations -- such as the Telecommunications Industry Association or the broader Third Generation Partnership Project (of which the TIA is a member) -- to promote the adoption of its patented technologies.

That adoption, alleges Broadcom, ensures Qualcomm controls many of the technologies needed to run CDMA, especially the emerging third-generation standard called Wideband Code Division Multiple Access (WCDMA).

In its suit, Broadcom cites several examples of how Qualcomm allegedly violated its agreements not to exploit its patents. Broadcom claims Qualcomm unfairly drove hard bargains with firms who wanted licenses to develop products based on Qualcomm technology.

Broadcom also claims Qualcomm refused to license its patents according to agreements it made under the rules observed by the standards organizations that have adopted the company's technology.

Bargaining Leverage

While Broadcom says it is outside looking in to a CDMA market invented by Qualcomm, Qualcomm accuses Broadcom of not bargaining in good faith over licensing.

"This case, like the earlier patent cases filed by Broadcom against Qualcomm, appears to be a desperate attempt by Broadcom to gain bargaining leverage through meritless litigation," said Louis Lupin, senior vice president and general counsel of Qualcomm.

Lupin indicated Qualcomm might file a countersuit. The firm outlined previous patent suits that Broadcom lost against other companies.

But Broadcom claims Qualcomm's actions affect other technology firms, not just Broadcom. When asked about the possibility of such companies testifying against Qualcomm, Bill Blanning, Broadcom's vice president of public relations, said Broadcom could not comment at this time.