Apple, Qualcomm Settle

Well I certainly didn’t see that one coming!

CNBC is reporting the Apple and Qualcomm has settled their royalty and patent dispute that was going to trial in San Diego this week.

According to the report, as part of the settlement all legal action worldwide between the two companies will be dropped, and Qualcomm said it expected a $2 increase in earnings per share as its stock rose over 15% on the announcement.

Apple shares were up less than 1%.

The trial started yesterday and was expected to last until May, according to the report from CNBC, and both sides were asking for billions in damages.

Their legal battle centered around modem chips and had been going on since 2016.

Apple had bought those chips from Qualcomm for years, but “chafed under Qualcomm’s prices and requirement that any company using its chips would also pay licensing fees for its patents.”

Here’s the lede from the Apple 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.