Apple Inc and Qualcomm Inc on Tuesday decided to drop all ongoing litigations and settle their royalty dispute, reaching an agreement on global patent license and chipset supply.
The settlement also includes a payment from Apple to Qualcomm, whose size the two companies did not disclose.
Shares of Qualcomm jumped 22 percent in late afternoon trading, while Apple share were up marginally.
Apple filed a $1 billion lawsuit against Qualcomm in January of 2017, accusing the chipmaker of overcharging for chips and refusing to pay some $1 billion in promised rebates.
Apple's iPhones earlier used to sport only Qualcomm's modem chips, which help a device connect to wireless data networks. With the launch of iPhone 7 in 2016, Apple started using Intel modem chips in some models instead.
Shares of Intel, Qualcomm's main competitor for supplying modem chips to Apple, trimmed gains to be up marginally at $56.42.
April 16, 2019 April 16, 2019 247newsupdateAmerica, Business, Global, TechnologyApple Inc., Apple Qualcomm patent case, Apple vs Qualcomm, Qualcomm Inc.