Apple and Qualcomm end legal battle over royalties
Apple will make a one-time payment to Qualcomm and the two entered into a multiyear-chip supply and licensing agreement
San Francisco — Apple and Qualcomm agreed to end a two-year legal battle over billions of dollars of technology licensing fees that had threatened to reshape the chipmaker’s business. Qualcomm’s shares jumped on the announcement. Apple will make a one-time payment to Qualcomm and the two entered into a multiyear-chip supply and licensing agreement, effective April 1, in which the iPhone maker will pay royalties to Qualcomm, the companies said Tuesday in a statement. All the litigation between the companies around the world will be dismissed, according to the statement. No amounts related to the payments or fees were given. Qualcomm said it expects the agreement to add $2 per share to its earnings when it begins shipments of chips to Apple. While it is not clear how much Qualcomm gave up in concessions to Apple in terms of payments and rates, the settlement lets it continue one of the most profitable businesses in the $400bn semiconductor industry. Apple was the remaining holdout fr...
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