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4/16, 9:00 PM (Source: TeleTrader)
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Apple+0.34%

203.88
Chart for: Apple Inc.

Qualcomm+0.86%

79.89
Chart for: QUALCOMM Incorporated

Apple, Qualcomm reach settlement on royalty dispute

American tech company Apple and the semiconductor manufacturer Qualcomm reached a settlement to their long-standing royalties dispute, according to a joint statement issued by the companies on Tuesday. The agreement, which includes an undisclosed payment by Apple to Qualcomm, will dismiss all litigation between the two firms around the world. In addition, the companies reached a six-year license deal effective as of April 1, 2019, as well as a multi-year chipset supply agreement.

The two companies have been engaged in a legal fight over Qualcomm's right to charge heightened royalties for the use of its technology in Apple products. Meanwhile, Qualcomm argued that Apple has an obligation to pay a percentage of the revenue generated by iPhone sales in exchange for using its patents.

Shares of Qualcomm surged following the report, rising 13% at 3:04 pm ET.

Breaking the News / FH