Shares of Qualcomm (QCOM) fell on Tuesday morning after ParkerVision (PRKR) escalated its patent infringement case against the American chip designer by filing an appeal against an earlier court judgment at the Federal Circuit.
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ParkerVision, a wireless communication technology provider, first dragged Qualcomm to court in 2014, claiming that the latter adopted its radio receiver technology in its wireless chips.
Specifically, ParkerVision alleged that Qualcomm — which is renowned for its Snapdragon processors for mobile phones — copied without authorization its methods for converting and processing radio signals in mobile chipsets. This technology is used in smartphones and other wireless devices.
ParkerVision Debates Qualcomm’s Victory
However, a U.S. district court ruled in May that Qualcomm did not infringe on ParkerVision’s patent because Qualcomm’s products did not meet all the claims requirements provided in the latter’s patent claims.
Now, Florida-based ParkerVision is appealing against that ruling via its new motion, arguing that the court’s interpretation flies in the face of the patent’s wording, while also jettisoning earlier guidance from the Federal Circuit.
According to ParkerVision, the court’s addition of a “generating limitation” to its patent claims helped Qualcomm to get a favorable judgment.
The court had ruled that ParkerVision’s patent only applies to systems that use energy stored in a capacitor to create a lower-frequency signal when that energy is released. Because Qualcomm’s system uses switches instead, the court judged the company did not infringe the patent.
ParkerVision Seeks Speedy Legal Process
Meanwhile, ParkerVision has asked that the appeals court reduce waiting times so that its case can be argued in early 2026.
The company argued that waiting longer would hurt its case because evidence and witness availability is getting worse due to prolonged delays. Furthermore, ParkerVision noted that many of the critical events that inform its claims originate in the mid-1990s and early 2000s.
Meanwhile, the escalation in the dispute comes as Qualcomm recently secured “complete victory” over Arm Holdings (ARM) in their protracted licensing dispute. Qualcomm is also facing an antitrust probe from Chinese regulators who are investigating its acquisition of Israeli chip designer Autotalks earlier this year.
Is QCOM a Good Buy Now?
On Wall Street, Qualcomm’s shares currently have a Moderate Buy consensus recommendation. This is based on 10 Buys, seven Holds, and one Sell rating assigned by 18 Wall Street analysts over the past three months. However, at $181.6, the average QCOM price target suggests a 14% upside potential from the current level.
