BlackBerry announced that it has been awarded $814,868,350 USD in royalties following legal arbitration with processor manufacturer Qualcomm. The Canadian-based company states that it overpaid the chip maker ranging between the years of 2010 to 2015.
Qualcomm will issue an additional award after the two companies complete a follow-up hearing on May 30th focused on discussing attorney fees and interest related charges. According to The Verge, Qualcomm is, as expected, not happy with the decision, however, the company has no choice as the decision is binding and cannot be challenged.
The original arbitration was held in San Diego, California and went from February 27th to March 3rd.
Qualcomm and BlackBerry struck an agreement last April to enter arbitration as the latter company aimed to dispute that it overpaid royalties. BlackBerry argues a maximum amount of royalties to be paid to Qualcomm was not set at the time. Qualcomm, however, disputes that BlackBerry’s payments were non-refundable.
“BlackBerry and Qualcomm have a longstanding relationship and continue to be valued technology partners,” said John Chen, executive chairman and CEO of BlackBerry. “We are pleased the arbitration panel ruled in our favour and look forward to collaborating with Qualcomm in security for ASICs and solutions for the automotive industry.”
BlackBerry’s stocks have skyrocketed since the announcement, rising 18.6 percent or 1.91 CAD, hitting a current price of $12.15. Qualcomm is also engaged in a legal dispute with Apple surrounding licensing fees.
[source]BlackBerry[/source]
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