Broadcom Settles Infringement Suit

Irvine-based chip powerhouse Broadcom Corp. said Tuesday it settled a legal dispute with Stanford Telecommunications Inc., a wireless communications firm in Sunnyvale.

Stanford Telecommunications sued Broadcom in 1996, alleging that certain Broadcom products infringed on its transmitter and receiver technology patents.

Broadcom filed a counterclaim and brought a separate action accusing Stanford of misappropriating Broadcom trade secrets.

As part of the settlement, the companies agreed to dismiss all claims and counterclaims. Broadcom also made a one-time payment to Stanford Telecommunications for the license to this technology. The amount was not disclosed.

“I think we got a favorable outcome for Broadcom, because we also got access to license all of their intellectual property in the cable area,” said Henry T. Nicholas III, chief executive of Broadcom.

Neither firm admitted any liability in connection with the legal actions. Officials at both companies declined to comment further.

Also Tuesday, Canada’s Newbridge Networks Corp. agreed to buy Stanford Telecommunications in a $280-million stock deal.

Stanford shares rose 6 cents to $26.50 a share. Broadcom’s stock gained $3.44 a share, closing at $117.44 amid heavy trading.