Back to Headlines Print Version Buzz Up Stumble it Tweet it Facebook LinkedIn

Emulex Denies All Broadcom Patent Infringement Allegations

By Jerry A. DiColo, Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Emulex Corp. (ELX) denied allegations brought in a lawsuit by Broadcom Corp. (BRCM) that it has infringed on Broadcom's patents.

According to a court filing from the U.S. District Court for the Central District of California, Emluex alleged that Broadcom's claims that Emulex infringed its patents are invalid, due in part to licenses granted by Broadcom to Emulex's suppliers and Broadcom's participation in standards-setting bodies.

In September, Broadcom, which designs chips used in communications and networking, filed a lawsuit against Emulex, alleging that Emulex infringed on 10 of its patents, covering "a broad range of high-speed data and storage- networking technologies."

Broadcom shares were recently up 0.3% at $26.50 in after-hours trading. Emulex shares fell 0.3% to $9.95.

Emulex declined to comment further on the court filing.

-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@ dowjones.com

(Updates with comment from Broadcom, additional background, share prices.)

By Jerry A. DiColo

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Emulex Corp. (ELX) denied allegations brought in a lawsuit by Broadcom Corp. (BRCM) that it has infringed on Broadcom's patents, the latest development in an ongoing battle between the makers of communications chips.

According to a court filing Wednesday with the U.S. District Court for the Central District of California, Emulex said Broadcom's arguments are invalid because of, among other reasons, licenses granted by Broadcom to Emulex's suppliers and Broadcom's participation in standards-setting bodies.

Broadcom, which designs chips used in communications and networking, filed a lawsuit against Emulex in September. Broadcom alleged that Emulex infringed on 10 of its patents, covering "a broad range of high-speed data and storage- networking technologies." The suit came after Emulex fought off a hostile takeover bid from the Irvine, Calif.-based company.

Broadcom had been pursuing a takeover of Emulex since late last year. Broadcom has said it wanted to add Emulex's specialty--so-called Fibre Channel chips that help connect server systems with storage devices--to its current technologies serving that market.

In April, Broadcom went public with an unsolicited offer of $9.25 a share. After raising its bid to $11 a share and ending its attempts at a hostile takeover, Emulex remained uninterested and Broadcom dropped the acquisition attempt in July.

Broadcom shares were recently up 1% to $26.66 in after-hours trading. Emulex shares fell 0.3% to $9.95.

Emulex declined to comment further on the court filing.

In response to the filing, Broadcom Vice President for Intellectual Property Litigation David Rosmann said, "We look forward to proceeding onto the case and we're confident that we can prove their infringement is pervasive."

-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@ dowjones.com

  (END) Dow Jones Newswires
  11-04-091844ET
  Copyright (c) 2009 Dow Jones & Company, Inc.