Qualcomm’s settlement payment from Apple revealed
Qualcomm will collect at least $4.5 billion from its patent litigation settlement with Apple, which has seen the microchip maker’s share price surged since the announcement last month.
According to Qualcomm’s second fiscal quarter results, which were published yesterday, May 1, the microchip maker will receive between $4.5 billion and $4.7 billion as a result of the settlement.
The two companies settled their bitter, long-running dispute over microchip patent licensing last month.
As part of the settlement, which ended all pending litigation between the two companies, Apple secured a six-year license to Qualcomm standard-essential patents with a two-year option to extend.
Qualcomm will now supply microchips to new Apple iPhone models, which are expected to be equipped with 5G capability during the period of the licensing deal.
The $4.5 billion payment does not include future royalties paid as part of the six year licensing agreement.
The dispute saw the rivals trade blows in various jurisdictions including China and Germany.
Apple accused Qualcomm of licensing its microchip patents on terms which were not fair, reasonable and non-discriminatory (FRAND), while Qualcomm alleged that Apple’s iPhone products infringed its patents.
Last December, a Chinese court issued an injunction preventing the sale of older iPhone models after ruling that they infringed Qualcomm’s patents.
A court in Mannheim, Germany, however, threw out a Qualcomm patent infringement suit against Apple in January, despite a court in Munich previously issuing an injunction against the sale of older iPhone models the previous month.
Qualcomm’s stock share price has risen more than 50% since the deal was announced.
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