Broadcom Hits Intel With Patent Lawsuit

The legal disputes over patents between Broadcom Corp. and Intel Corp. erupted anew Monday with Broadcom filing a suit challenging key components of the giant chip maker’s business.

Broadcom, in a federal lawsuit filed in Texas, contends that Intel is infringing on two of the Irvine firm’s patents for support graphics chipsets, which are needed to operate personal computers.

Intel spokesman Robert Manetta said the Santa Clara, Calif., company would not comment on the allegations yet. Broadcom would not comment beyond the lawsuit.

Broadcom, which was nurtured by Intel when it burst onto the public scene in 1998 and then grew faster than any previous chip maker, has battled with Intel in recent years over employees and trade secrets as well as technology.

Early last year, Intel went to court to try to block several former employees from going to work at Broadcom, charging that the Orange County company had acquired trade secrets in the process. The case was settled last November.

While that case was pending, Intel filed a patent lawsuit challenging basic Broadcom communications chips. That suit is scheduled to go to trial Nov. 28 in federal court in Delaware.

Analysts view the suits as a “grudge match,” a fight for market share as Intel has expanded its business into Broadcom’s communications domain.

News of the lawsuit was released after the markets closed for the day. Broadcom’s stock gained $1.74 to $47.55 a share, while Intel stock rose 36 cents to $30.99 a share, both on Nasdaq.