Advanced cellphone models using Qualcomm chips have been banned by the US Trade Commission over a patent infringement.
The International Trade Commission's (ITC) ban, which is being appealed, exempts models already being sold. The ITC said the Qualcomm chips infringed a patent owned by Broadcom.
Qualcomm and Verizon Wireless, the biggest US mobile service providers, said they planned to ask the Bush administration to invalidate the order. Qualcomm said it would seek an emergency stay from the US Federal Circuit Court of Appeals, which specialises in patent cases.
Shares of Qualcomm rose as much as 2.4 per cent after the news as some investors had feared an even tougher ban that would include existing as well as future phones.
Paul Jacobs, chief executive of Qualcomm, said the ITC had overstepped its authority with a ban he said would stop the sale of "tens of millions" of phones in the future.
Qualcomm executives said they would look at ways to create designs that would avoid infringing the Broadcom patents but said this would take time as manufacturers and service providers would have to approve the changes.
