Wired and wireless communications service provider Broadcom Corp. (BRCM) Monday said it has commenced litigation against Emulex Corp. (ELX) for infringement of its patents related to networking and communications technologies. Broadcom is also seeking both monetary damages and injunctive relief to stop continued infringement.
As per the complaint filed, Broadcom alleged that Emulux infringed 10 of its patents covering a broad range of high speed data and storage networking technologies.
The infringed patents, according to Broadcom, covers a broad range of technologies including that of integrated circuit design, serializer/deserializer, TCP offload engine, remote direct memory access, Fibre Channel, and Fibre Channel over Ethernet technologies.
David Rosmann, Vice President for Intellectual Property Litigation said, "As we developed our plans for the Fibre Channel over Ethernet market, we discovered that Emulex is infringing multiple Broadcom patents in an effort to use Broadcom technology to compete against both our existing and future products."
Emulux earlier rejected a sweetened offer from Broadcom to acquire it for $11.00 per share in cash. Emulex, cited the offer as significantly undervalues the company and inadequate. In response, Broadcom said it would drop all efforts to acquire Emulex.
BRCM closed Monday's regular trading at $30.01, down $0.18 or 0.60%, on a volume of 8.51 million shares.
ELX closed Monday's regular trading at $10.53, up $0.27 or 2.63%, on a volume of 1.72 million shares. In after-hours, the stock dropped $0.33 or 3.13%, to trade at $10.20.
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