BlackBerry Awarded $814.9 Million in Arbitration Against Qualcomm -- Update

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 [e-mail]

(END) Dow Jones Newswires

April 12, 2017 09:58 ET (13:58 GMT)

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