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Shares of Qualcomm (QCOM - Free Report) dipped more than 2.7% in morning trading Wednesday after an arbitration panel ordered the chipmaker to refund a sum of nearly $815 million to BlackBerry .
In April 2016, Qualcomm and BlackBerry agreed to arbitrate a dispute related to whether the semiconductor manufacturer’s cap on certain royalties applied to payments made by BlackBerry under a license agreement between the two parties.
“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,” the company said in a press release.
According to BlackBerry’s own statement, the award announced today is a preliminary one, and a final amount including interest and attorneys’ fees will be issued after a hearing on May 30. BlackBerry was also careful to note that it continues to do business with Qualcomm.
“BlackBerry and Qualcomm have a longstanding relationship and continue to be valued technology partners," said BlackBerry CEO John Chen. "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."
The arbitration decision comes just a day after the latest twist in Qualcomm’s ongoing legal dispute with Apple (AAPL - Free Report) . Earlier this year, Apple filed a lawsuit against Qualcomm, accusing the semiconductor giant of overcharging for chips and refusing to about $1 billion in promised rebates. On Tuesday, Qualcomm announced that it was countersuing Apple based on its allegation that the iPhone maker purposefully held back its most advanced chip features (also read: Qualcomm Countersues Apple Over Holding Back Most Advanced Chips).
These recent headaches are just a few on the growing list of legal disputes involving Qualcomm over the past few years. In 2015, a Chinese regulatory authority fined the company nearly $975 million for abusing China’s anti-competitive terms. In 2016, Qualcomm was fined $886 million in South Korea for restrictive licensing practices. Moreover, since 2011, Qualcomm has been under investigation for competition violations in the European Union region.
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Here's Why Qualcomm (QCOM) Stock Dipped Today
Shares of Qualcomm (QCOM - Free Report) dipped more than 2.7% in morning trading Wednesday after an arbitration panel ordered the chipmaker to refund a sum of nearly $815 million to BlackBerry .
In April 2016, Qualcomm and BlackBerry agreed to arbitrate a dispute related to whether the semiconductor manufacturer’s cap on certain royalties applied to payments made by BlackBerry under a license agreement between the two parties.
“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,” the company said in a press release.
According to BlackBerry’s own statement, the award announced today is a preliminary one, and a final amount including interest and attorneys’ fees will be issued after a hearing on May 30. BlackBerry was also careful to note that it continues to do business with Qualcomm.
“BlackBerry and Qualcomm have a longstanding relationship and continue to be valued technology partners," said BlackBerry CEO John Chen. "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."
The arbitration decision comes just a day after the latest twist in Qualcomm’s ongoing legal dispute with Apple (AAPL - Free Report) . Earlier this year, Apple filed a lawsuit against Qualcomm, accusing the semiconductor giant of overcharging for chips and refusing to about $1 billion in promised rebates. On Tuesday, Qualcomm announced that it was countersuing Apple based on its allegation that the iPhone maker purposefully held back its most advanced chip features (also read: Qualcomm Countersues Apple Over Holding Back Most Advanced Chips).
These recent headaches are just a few on the growing list of legal disputes involving Qualcomm over the past few years. In 2015, a Chinese regulatory authority fined the company nearly $975 million for abusing China’s anti-competitive terms. In 2016, Qualcomm was fined $886 million in South Korea for restrictive licensing practices. Moreover, since 2011, Qualcomm has been under investigation for competition violations in the European Union region.
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>