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Apple, Qualcomm settle royalty dispute, and Qualcomm is spiking
PUBLISHED 15 MIN AGO UPDATED MOMENTS AGO
David Faber
@DAVIDFABER

Kif Leswing
@KIFLESWING

Apple and Qualcomm have settled their royalty dispute, the companies announced in a press release.

The settlement includes a payment from Apple to Qualcomm as well as a chipset supply agreement, suggesting that future iPhone may use Qualcomm chips.

Qualcomm stock rose over 13% after the news broke. Apple was up less than 1%.

The two companies started proceedings in a trial in federal court in San Diego on Monday, which was expected to last until May.

In November, Qualcomm CEO Steve Mollenkopf said that he believed that the two companies were on the “doorstep” to settling. Apple CEO Tim Cook contradicted him shortly after, saying that Apple hasn’t been in settlement discussions since the third calendar quarter of 2018.

The complicated legal battle centered around modem chips. For years, Apple bought modem chips from Qualcomm, but chafed under Qualcomm’s prices and requirement that any company using its chips would also pay licensing fees for its patents.

Apple and Qualcomm were not immediately available for comment.

Here is the full press release:

Qualcomm and Apple® today announced an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.

This story is developing. Please check back for updates.