ITC Bans Import of Qualcomm-based Phones

The US International Trade Commission sided with Broadcom on Thursday, ruling that all imports of cell phones using Qualcomm chips could not be imported into the country.

While current models are allowed to continue to be imported, future models are barred from importation. However, with the fast pace of updates to cellular phones, it essentially means a full ban within a matter of months.

Qualcomm stands to lose the most from such a ban - as much as $1.6 billion USD in annual revenue -- but the wireless consumer could feel the pinch through a lack of new phone models. Phones like the RAZR 2 will not be able to be introduced in the US due to its use of infringing chips.

CDMA carriers such as Verizon and Sprint will be hit hardest, as nearly all their phones use Qualcomm chips (CDMA was created by the company). AT&T and others will still see some residual effects, but not as severe.

In fact, Verizon said it will go to court to have the order blocked, and lobby the White House to intervene, saying it was being punished for doing nothing wrong. Qualcomm also has argued that the agency overstepped its bounds.

Under current law, the White House could veto the ruling within 60 days. Broadcom has reached out to Qualcomm, saying it would be more than glad to license its patents to the company.

"We simply want to be adequately compensated for the use of our intellectual property," a spokesperson told the Associated Press.