Qualcomm agrees with Apple to drop all litigation
Qualcomm Inc on Tuesday won a major victory in its wide-ranging legal dispute with Apple Inc. In particular, the two companies reached a surprise settlement that called for the iPhone to once again use Qualcomm modem chips.
The chipmaker and Apple agreed to drop all litigation related to their royalty dispute, shares soar 23%.
Stocks impacted: Qualcomm Inc (QCOM), Apple Inc (AAPL)
The settlement includes a six-year patent license and a payment from Apple to Qualcomm. However, a press release did not specify the terms of the payment. The agreement ends all ongoing litigation, including with Apple's contract manufacturers. The settlement followed two years of increasingly bitter legal battles between the two companies and came as opening arguments took place at a trial in federal court in San Diego. Shares of Qualcomm jumped 23 percent to $70.45 in regular trading on tuesday, their biggest gain in more than 19 years, then hit $75.25 in after-hours trading.
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