The most popular U.S based chipmaker, Qualcomm said in a statement on Wednesday that they are expecting a settlement of $4.5 Billion to $4.7 Billion in its Royalty Battle in the third quarter of this year against the smartphone manufacturing giant, Apple.
Qualcomm said this additional revenue will be put in line with its release of latest earnings. According to Qualcomm, this money would be paid from the Apple on the account to release our obligations and certain customer related liabilities.
Apple sued the chipmaker for alleged unfair license practices of $1 Billion and escalated when the other company filed a countersuit
The California Based Chipmaker reported a $5 Billion increase in the revenue of this year’s ending quarter, because of the $4.5 Billion from Apple’s settlement. Although, it was expected in the current quarter was from $9.2 to $10.2 billion in revenue.
In the recent dates in April, both Qualcomm and Apple come to an agreement and announced that they will be ending all litigations which had been harming both in the royalty payments.
For the past two years, the companies have been fighting battles over royalties. But, this war could have ended up Qualcomm paying billions of Dollars.
The companies came to an agreement in the last-minute settlement in the courtroom during a clash in California.
In the earnings released by Qualcomm on Wednesday, company stated that on the common grounds, they have settled into Apple and Contract manufacturers to dismiss all the lawful litigations.
Qualcomm said that they have entered into a six year global patent license agreement with Apple that will have a two year option to extend the deal.
Apple accused the California based maker of the extra charge that it has been getting for its chips for which the company had the patents, but they backfired with denying the allegations and accused Apple of using their position and asked to negotiate down the prices.