Apple and Qualcomm settle royalty dispute with new patent agreement

Shares of Qualcomm jumped 16% in late afternoon trading, while Apple share were up marginally

Apple Inc and Qualcomm Inc on Tuesday settled their royalty dispute, reaching an agreement on global patent license and chipset supply. The settlement includes a payment from Apple to Qualcomm.

Apple had alleged that Qualcomm's patent practices were an illegal move to maintain a monopoly on the market for premium modem chips that connect smart phones to wireless data networks.
 

Qualcomm in turn had said Apple used its heft in the electronics business to wrongly order contract factories such as Hon Hai Precision Co Ltd's Foxconn to withhold royalty payments from Qualcomm that Apple had historically reimbursed to the factories.
 

Shares of Qualcomm jumped 16 per cent in late afternoon trading, while Apple share were up marginally. CNBC had earlier reported about the settlement.