Orange County Based Broadcom Wins Patent Infringement Suit Against Rival Emulex

Intellectual Property Litigation Orange County – This month a court upheld the validity of Broadcom patent numbers 7,058,150 and 7,471,619. It also rejected a challenge by Emulex to an earlier damage award of $388,000 for infringing on a chip patent. Broadcom requested a permanent injunction to prevent Emulex from selling, supporting, using, or making infringing products in the United States. The lawsuit took place in the United States District Court for the Central District of California in Orange County. U.S. District Court Judge James Seina issued the final ruling.

Several major Emulex products will be affected by Broadcom’s patents. These include Emulex’s Lancer chips (XE201), four Fibre Channel switch products, and BladeEngine 2 (BE2) and BladeEngine 3 (BE3) products. The BladeEngine 2 (BE2) and BladeEngine 3 (BE3) are 10 Gigibit Ethernet controllers used in Emulex’s OneConnect Converged Network Adaptors.

The first patent covers serializer and deserializer (SerDes) modules that Emulex purchases from suppliers, and which Emulex incorporates into its products. Emulex plans to work with suppliers to implement necessary design changes. Broadcom obtained the second patent from the bankruptcy of Gadzoox Networks and claims infringement against the Emulex InSpeed embedded switch chip products. No damages were awarded on this claim.

Broadcom is a publically traded Fortune 500 company with $7.4 billion in annual revenue. It is based in Irvine, California and specializes in semiconductor solutions for wired and wireless communication. Broadcom produces products to deliver mobile multimedia, video, data and voice connectivity in the office and home. It has a broad portfolio of embedded software and chip solutions and is the largest producer of chips for set-top boxes.

Emulex is based in Costa Mesa, California. It manufactures storage networking infrastructure solutions and has approximately $429 million in annual revenue.

Broadcom attempted to acquire Emulex in 2009. On April 21, 2009, Broadcom offered to purchase all existing shares of Emulex for $9.25 per share, 40% above the stock’s market closing price, but the board viewed the offer as inadequate. On June 30, 2009, Broadcom then increased the offer to $11 per share, valuing the company at $925 million, but the board also rebuffed this offer.

Broadcom filed the original patent infringement lawsuit a few months later, September 2009. It charged Emulex with infringing ten of its patents.




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