THE CANADIAN PRESS
, Last Updated: 11:11 AM ET
WATERLOO, Ont. — Shares of BlackBerry Ltd. hit their highest mark in more than a year after the company announced it had been awarded US$ 814.9 million in a binding interim arbitration decision in a dispute with Qualcomm Inc. over royalty overpayments.
The company’s shares were up $ 1.88 or about 18% at $ 12.15 in trading on the Toronto Stock Exchange after going as high as $ 12.22.
The two companies agreed last year to arbitrate a disagreement regarding whether Qualcomm’s agreement to cap certain royalties applied to payments made by BlackBerry under a license agreement.
BlackBerry chief executive John Chen said the two companies have a long-standing relationship and continue to be valued partners.
“We are pleased the arbitration panel ruled in our favour and look forward to collaborating with Qualcomm,” Chen said in a statement.
BlackBerry said a final award including interest and reasonable legal fees will be issued after a hearing on May 30.
Qualcomm said while it does not agree with the decision, it is binding and cannot be appealed.
The company said the decision is limited to provisions unique to BlackBerry’s license agreement with Qualcomm and has no impact on agreements with any other licensee.