Emulex To Pay Broadcom $58 Million

Broadcom Corporation and Emulex Corporation have entered into a partial settlement and worldwide patent license agreement relating to the patent litigation in the U.S. Federal District Court in Santa Ana, California.

The agreement will result in the dismissal of certain of Broadcom’s infringement claims against Emulex. Emulex also receives a license to Broadcom U.S. Patents Nos. 7,471,691; 7,058,150; 6,424,194 and related families for certain fields of use including FC applications.

The fields of use licensed to Emulex are related, in part, to the Emulex XE201 (Lancer) ASICs, that are capable of FC and Ethernet, 16Gb FC HBAs, FC SoCs and other FC products.

Emulex will pay to Broadcom a release and license fee of $58 million in cash.

Additional terms of the agreement include,
among other elements:

• Emulex agreed to provide certain rights to Broadcom protecting Broadcom from Emulex patent assertions; and
• The Emulex products are licensed to Emulex for the permitted fields of use, and are licensed to be purchased by Emulex’s customers worldwide, and are licensed to be made for Emulex by Emulex’s suppliers.

The remainder of the existing litigation between the parties regarding certain of Broadcom’s U.S. Patents was not dismissed.

Other terms of the agreement are confidential.

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