Orange County Business Journal

Another Court Win for Broadcom vs. Emulex

Chris Casacchia Monday, December 19, 2011

Costa Mesa-based networking electronics maker Emulex Corp. infringed on two patents from Broadcom Corp., a court ruled Monday.

The infringing products include lines of 10 Gigabit Ethernet controllers, chips and switches, according to the ruling today by the U.S. District Court for the Central District of California.

The court also rejected Emulex's challenge to the validity of the Broadcom patents and earlier damage awards.

In October, a court ordered Emulex to pay $388,000 to Irvine-based Broadcom for infringing on a chip patent.

Broadcom has requested a permanent injunction prohibiting Emulex from manufacturing, using, selling or supporting the infringing products in the U.S.

The company asked for a ruling on the request in the first quarter.

The latest ruling is another win for Broadcom in a dispute with Emulex that began in 2009, when the chipmaker charged Emulex with infringing on 10 of its patents for chips related to high-speed networking and data storage technologies.

The original lawsuit was filed in September 2009, a few months after Emulex rebuffed a final $912 million takeover offer from Broadcom.

Broadcom is the biggest chipmaker based in Orange County, with about $7.4 billion in annual revenue and the 10th largest in the world.

Emulex is the sixth-largest computer products maker here, with about $420 million in annual revenue.

Its shares are down more than 5% in afternoon New York trading to a market value of about $574 million.

Broadcom shares are down more than 2% to a market value of about $15.1 billion.