BlackBerry Awarded $814.9 Million in Arbitration Against Qualcomm -- Update
April 12 2017 - 10:13AM
Dow Jones News
By Imani Moise
BlackBerry Ltd. said Wednesday that it will receive a $814.9
million refund from Qualcomm Inc. after entering into binding
arbitration to settle a licensing-agreement dispute.
The award is a big boost for BlackBerry: It amounts to
nearly-two thirds of the revenue the firm generated in 2016 and put
a charge into its stock early Wednesday, when shares climbed 18%.
It ends a yearlong dispute over whether Qualcomm's cap on royalty
payments applied to an agreement it had with BlackBerry.
A final award including interest and attorneys' fees will be
issued after a hearing next month.
"BlackBerry and Qualcomm have a longstanding relationship and
continue to be valued technology partners," BlackBerry Chief
Executive John Chen said.
Qualcomm said it doesn't agree with the decision, but it cannot
be appealed. The company said the arbitration decision is limited
to prepayment provisions unique to its license agreement with
BlackBerry and has no impact on any other license.
Qualcomm's patent-licensing business, which includes chips and
patents widely used in wireless devices, has come under fire from
antitrust regulators in China, Europe, South Korea and the U.S.
Earlier this year, Apple Inc. claimed Qualcomm abused its position
as a leader in cellular chip development to impose costly terms on
customers. Qualcomm has since fired back, defending its business
model and seeking damages from Apple over withheld payments for
technology used in iPhones.
Qualcomm shares recently traded 1.8% lower.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
April 12, 2017 09:58 ET (13:58 GMT)
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