Windows Phone Thoughts: U.S. Bans Imports of Cellphones using Qualcomm Chips in Patent Case

"A federal agency has banned imports of new cellphones made with Qualcomm semiconductors because the chips violate a patent held by Broadcom. The International Trade Commission said today that the import ban would not apply to mobile phone models that were imported on or before June 7. The ruling is a blow to Qualcomm, to wireless handset makers like Motorola and Samsung, and to service providers like Verizon Wireless, SprintNextel and AT&T. All three service providers sell phones that rely on Qualcomm chips for access to their high-speed data networks, and 80 percent of the phones sold by Verizon use Qualcomm’s technology. Analysts say the decision could also result in higher prices for cellphone users as companies pass along the costs of switching to the new technology."

Broadcom and Qualcomm have been fighting for quite some time and the victim is the consumer. At issue is the EV-DO chip used for all those fun 3G features. According to an MSNBC article, device makers LG and Samsung will be affected the most as well as Motorola's upcoming 3G version of the RAZR2. Though the iPhone has been criticized by some for its slower 2.5G offering, it may turn out to be a blessing in disguise since they do not use Qualcomm chips. Most of the US cellular carriers will see some challenge to their device lineup, especially Verizon, which as noted above, has 80 percent of its phones using the Qualcomm chip.

The ITC announcement may not be the last word. On Friday, Qualcomm said "it will immediately ask for a delay from the courts. It will also request President George Bush veto the order issued by the US International Trade Commission." You can read the official ITC announcement here.