BlackBerry Ltd (NASDAQ:BBRY) and QUALCOMM, Inc. (NASDAQ:QCOM) have finally come to an agreement that marks the end of their royalty dispute.
Blackberry made an announcement on Friday revealing that Qualcomm agreed to part with $940 million which includes legal fees and interest. The chip maker stated in April that it would pay $814.9 million to Blackberry. The new deal will mark the fulfillment of that promise. The excess amount will cater to the legal costs as well as the interest accrued during the royalty dispute. The settlement marks a huge win for Blackberry which has been focused towards the expansion of its licensing businesses as well as its software development unit.
Will the dispute affect the partnership between the two firms in the future?
The loyalty dispute between Qualcomm and Blackberry began in 2016 after the chip maker agreed to cap various royalties that applied to payment made by the software and handset manufacturing company as part of a licensing deal. Blackberry stated that Qualcomm should finalize the deal by the end of this month.
“Qualcomm is expected to pay the final amount on or before May 31,” Blackberry reported on Friday.
The Blackberry-Qualcomm royalty dispute is not the only case that the Canadian company has been facing. The firm has handled various patent litigation cases this year including a lawsuit that it filed against Nokia Oyj (ADR) (NYSE:NOK). The latter was accused of violating about 11 patents through offerings to various carriers. Blackberry was also engaged in another legal battle against Avaya in 2016. It also followed up with another lawsuit in which it accused Blue Products of violating 15 patents.
Qualcomm has also numerous other legal battles in the recent past including a royalty dispute filed against it by Apple Inc. (NASDAQ:AAPL). However, the chip maker hit back against the iPhone manufacturer with claims about its invented technologies and their impact in the industry through its licensing program. The recent Royalty dispute adds to the portfolio of legal battles that the company has engaged in over the past few years.
Blackberry stock closed the latest trading session at $11.11.