BlackBerry wins $815 million arbitration settlement against Qualcomm
BlackBerry CEO John Chen.
BlackBerry was awarded $814.9 million in an arbitration settlement with semiconductor giant Qualcomm.
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The two companies had agreed to arbitrate a contract dispute over whether Qualcomm's royalty cap program applied to payments made by BlackBerry under a licensing deal. The arbitrator determined that BlackBerry had indeed overpaid royalty fees between 2010 and 2015.
In a press release, Qualcomm said it "does not agree with the decision," but that it is binding and not appealable.
The two companies "have a longstanding relationship and continue to be valued technology partners," said BlackBerry CEO John Chen, referring to their continued collaboration on security for ASICs and the automotive industry.
Trading of BlackBerry's stock was briefly halted ahead of the announcement. It has since resumed and shares are up more than 10 percent.
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Qualcomm has a similar legal battle still looming with Apple. On Jan. 20, the Cupertino company filed a suit against Qualcomm. It accused the chipmaker of withholding nearly $1 billion in contractual payments it owed in retaliation for Apple's cooperation with South Korean regulatory investigators.
The suit also charges that Qualcomm is "attempting to extort" Apple into obstructing the investigation into Qualcomm's monopolistic practices. Additionally, the suit claims that Qualcomm has created an "abusive licensing model" that lets the company demand excessive royalties.