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Qualcomm to pay BlackBerry $814.9 million to stay royalties dispute

Chipmaker Qualcomm Inc said on Thursday it was asked to refund Canada’s BlackBerry Ltd $814.9 million within an arbitration over royalties for several past sales.

U.S.-posted stocks of BlackBerry were up 17.8 percent at $9.07 in heavy trading, while these were also up 17 percent at C$12.03 in Toronto.

Qualcomm’s stocks were down about 2 percent at $54.20.

The dispute were only available in 2016 pursuing Qualcomm’s contract to cover certain royalties put on payments created by BlackBerry under a licensing package.

Qualcomm said on Thursday it generally does not buy into the decision of the arbitration -panel, but the repayment is binding rather than appealable.

With BlackBerry likely to invest for progress in its software businesses, the arbitration honor will fortify the company’s balance sheet and improve the odds of acquisitions, Canaccord Genuity analyst Michael Walkley composed in an email.

He increased the purchase price concentrate on to $9.50 from $8.

Qualcomm is struggling a lawsuit submitted by Apple Inc, which includes accused the business of overcharging for potato chips and refusing to pay some $1 billion in promised rebates.

The U.S. federal has accused Qualcomm of resorting to anticompetitive strategies to keep a monopoly over key semiconductors found in mobile phones.

BlackBerry said on Wed a final prize, that may include interest and realistic lawyers’ fees, will be given after a reading on, may 30.

BlackBerry, that includes a market valuation around C$5.45 billion, reported earnings of C$1.31 billion in 2016, while Qualcomm, that includes a market capitalization of $81.75 billion, reported a earnings of $23.5 billion.

Sullivan & Cromwell LLP displayed BlackBerry in the proceeding. Reuters

Tags : $814.9 millionBlackBerryQualcommroyalties
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