UPDATED 14:30 EDT / DECEMBER 20 2011

Broadcom Wins Emulex Patent Suit

After Emulex rejected Broadcom’s two-month effort to acquire the company in July 2009, it filed a patent infringement lawsuit against the latter that has finally been closed, Bloomberg reported. U.S. District Judge James Selna of Santa Ana, Calif. denied a motion by Emulex for summary judgment on the verdict. The judge found that three Emulex semiconductors and four of its Fibre channel switches  have infringed two of Broadcom’s US patents -nos. 7,058,150 and 7,471,69.

Among the products are BladeEngine 2 and 3 and Lancer chips.

“We will work with our suppliers to implement design changes if necessary for the SerDes modules included in Emulex integrated chips,” Emulex said in its statement. “We plan to take appropriate steps to ensure continued product supply.”

Emulex’s shares went down 6.4 percent, the equivalent of 45 cents, to $6.62, while Broadcom slid by 3.4 percent to $27.74.  Emulex may seen further decline in  the first quarter of 2012, the timeframe when Broadcom asked Judge Selna to review a request for a permanent injunction preventing Emulex from selling the products above in the US.

As Broadcom finalizes its legal clash with Emules over its patents, the company is working towards developing new offerings to address several of the fastest growing markets for its products. One of the most recent launches is the BCM20730 low-power chip for computer accessories. It’s fully compatible with Bluetooth according to Broadcom and puts a big emphasis on increasing the power efficiency of the smaller gadgets lying around in the typical household. The reference design is said to be capable of achieving an extension of years to battery life.

Another recent update that expanded Broadcom’s patent portfolio is the $3.7 billion deal to acquire NetLogic, a maker of networking semiconductors. That breaks down to $50 per share.


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