BlackBerry Limited said it reached an agreement with chipmaker Qualcomm resolving “all amounts payable” in connection with the interim arbitration decision announced on April 12, 2017, related to a major licensing dispute.
“Following a joint stipulation by the parties, the arbitration panel has issued a final award providing for the payment by Qualcomm to BlackBerry of a total amount of U.S.$940,000,000 including interest and attorneys’ fees, net of certain royalties due from BlackBerry for calendar 2016 and the first quarter of calendar 2017,” said BlackBerry.
“Qualcomm will pay the full amount of the final award on or before May 31, 2017.”
On April 12, Qualcomm announced that a binding interim arbitration award required it to refund $814.9 million plus interest and attorneys’ fees to BlackBerry related to royalties for certain past sales of subscriber units.
Qualcomm said on April 12: “The parties had agreed to arbitrate a contract dispute relating to one specific issue: whether Qualcomm’s voluntary per unit royalty cap program applied to BlackBerry’s non-refundable prepayments of royalties for sales of a specified number of subscriber units from 2010 through the end of 2015.
“While Qualcomm does not agree with the decision, it is binding and not appealable.
“The arbitration decision was limited to prepayment provisions unique to BlackBerry’s license agreement with Qualcomm and has no impact on agreements with any other licensee.”