Arbitration Decide Qualcomm Pay BlackBerry $ 940 million

Arbitration Decide Qualcomm Pay BlackBerry $ 940 million
A final verdict is issued by an arbitration panel in which Qualcomm must pay BlackBerry for US $ 940 million as quoted by Phonearena.

The payment must be made before May 31, 2017. It happened on the same day that the new BlackBerry KEYone was launched in the US.

Earlier, last month it was reported that the arbitration panel had decided BlackBerry received an initial $ 814.9 million from Qualcomm to settle a royalty dispute.

BlackBerry claims that Qualcomm failed to limit the amount of royalties paid under the agreement of both parties in 2010.

At that time, BlackBerry is still a relevant company in the smartphone industry, just one year before being shifted from its peak as the king of the mobile world. At that time, everyone expects BlackBerry sales to continue to increase including Qualcomm and BlackBerry itself.

As a result, both companies reached an agreement whereby BlackBerry made fixed royalty payments to Qualcomm based on the number of phones sold by BlackBerry. Unfortunately, BlackBerry sales are destroyed by Apple iPhone and various Android handsets.

When BlackBerry sales collapse, the fixed royalty payments to Qualcomm get too high based on a lower amount, and exceed Qualcomm's royalty limits, designed to reduce the cost of using Qualcomm's critical patents.

When BlackBerry and Qualcomm make preliminary agreements, they decide to use binding arbitration to deal with any disputes between the parties. It caused the initial decision made last month.