Bush administration upholds phone ban

SAN DIEGO -- The Bush administration upheld an import ban Monday on cellphones that contain Qualcomm chips, further threatening the introduction of new handsets.

U.S. Trade Representative Susan Schwab said she was sticking to a long practice of declining to overrule the U.S. International Trade Commission unless conditions were "extraordinary." The executive branch has overruled the ITC only five times, most recently in 1987.

In June, the ITC banned imports of new, high-end phones that run on Qualcomm chips, raising doubts about the introduction of some models from carriers including Sprint Nextel and manufacturers like LG Electronics and Samsung Electronics.

The ITC ruling came in patent dispute between Qualcomm and rival chipmaker Broadcom. The commission found that Qualcomm infringed on a patent that protected Broadcom's technology to conserve battery power.

Schwab noted that industry players are working on alternative products to avoid the ban. She said a Department of Homeland Security review found insufficient justification for overturning the order on grounds that it would create problems for public safety agencies.

Qualcomm said it will ask the U.S. Court of Appeals for the Federal Circuit in Washington to reverse the ban and put it on hold while its appeal is considered. Chief Executive Officer Paul Jacobs said in a statement that he was disappointed but added Qualcomm will pursue "all legal and technical options available" to limit the impact on consumers.

The ban applies to the high-speed EV-DO and WCDMA network technologies, which allow users to more quickly surf the Internet and download music and video.

Qualcomm is using alternative software designed to escape the ban, but Broadcom may claim that it also infringes on its patent, Qualcomm attorney Alex Rogers said. A Broadcom attorney, David Rosmann, said he was unaware of Qualcomm's change and would reserve judgment until the company has a chance to review it.

Schwab acknowledged worries that the ban may slow the introduction of so-called third-generation, or 3G, mobile phones but said Broadcom's licensing deals with "two major wireless carriers" would soften the impact.