Chip maker Broadcom Corp
The U.S. District Court for the Central District of California ruled on Friday against Emulex, banning it from making or importing products that infringe two Broadcom patents.
However, the injunction is subject to a sunset period ending in 2013 during which Emulex can continue with sales to customers who had already placed orders by a certain date, the companies said. During this period, Emulex will pay Broadcom a royalty of 9 percent on those sales, according to Broadcom.
Emulex said separately it would take a charge of about $600,000 for damages to Broadcom against its third-quarter fiscal 2012 results. It said it is redesigning the affected products, which represented about 5 percent of its second quarter net revenue.
Broadcom shares rose 87 cents to $38.68 in morning trade on Nasdaq. Emulex shares were up 6 cents at $10.34 on the New York Stock Exchange.
(Reporting By Sinead Carew; Editing by Gerald E. McCormick)