BlackBerry has been awarded $814.9 million (roughly £652 million) in an arbitration settlement with Qualcomm.
That £652m sum, which will increase next month when legal fees and interest are added, was awarded to BlackBerry after an arbitration hearing concluded that Qualcomm had been overcharging the company for patent royalties between 2010 and 2015.
On April 20, 2016, BlackBerry and Qualcomm entered into an agreement to arbitrate a dispute regarding whether Qualcomm’s agreement to cap certain royalties applied to payments made by BlackBerry under a license agreement between the parties.
The binding arbitration hearing was held in San Diego, California from February 27, 2017 to March 3, 2017 under Judicial Arbitration and Mediation Services rules. BlackBerry was represented by Sullivan & Cromwell LLP in the proceeding.
John Chen, Executive Chairman and CEO of BlackBerry said,
“BlackBerry and Qualcomm have a longstanding relationship and continue to be valued technology partners,”
“We are pleased the arbitration panel ruled in our favor and look forward to collaborating with Qualcomm in security for ASICs and solutions for the automotive industry.”
Qualcomm said on Wednesday it does not agree with the decision of an arbitration panel, but the payment is binding and not appealable. The company said the decision is limited to provisions unique to BlackBerry’s license agreement with Qualcomm and has no impact on agreements with any other licensee.
Currently BlackBerry is trading at $8.90 per share after a gain of $1.20 per share or 15.58%.
