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Qualcomm And Apple Agree To Dismiss All Litigation

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Qualcomm Inc. (QCOM) and Apple Inc. (AAPL) agreed to dismiss all worldwide litigation between them, ending a long-running legal battle over the cost of the processors that phones use to connect to mobile networks.

Apple had accused chip-maker Qualcomm of overcharging, a claim the firm denied.

Today's settlement includes a payment from Apple to Qualcomm. But no details were disclosed about the payments or fees.

The companies said they also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.

Qualcomm's modem chips are likely to be used again in Apple's newest iPhone models. The iPhone used to rely entirely on Qualcomm's chips, but from 2016 Apple started using rival Intel's modem chips in some models.

QCOM closed Tuesday regular trading at $70.45, up $13.27 or 23.21 percent. In the after hours trade, the stock further gained $4.80 or 6.81 percent.

AAPL closed regular trading at $199.25, up $0.02 or 0.01 percent.

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