The following is the unofficial transcript of BREAKING NEWS from CNBC's David Faber on CNBC's "Power Lunch" (M-F 2 – 3PM) today, Tuesday, April 16th.
All references must be sourced to CNBC.
DAVID FABER: Apple and Qualcomm have agreed to a settlement in a long running dispute of course between the two companies that actually was in court in San Diego and continues to be in court at this very moment, as the various sides offer their opening arguments in a case that was expected to go as long as three to five weeks. This is a dispute that's been going on for years, of course, one in which Apple has stopped paying, through its contract manufacturers, royalties and fees to Qualcomm, that amount to many, many billions of dollars. Do not have a lot of details, however, people familiar with the situation tell me that the two parties have reached a settlement, do expect to hear fairly soon more specifics on said settlement that does involve dropping all litigation in all jurisdictions around the world between Apple and Qualcomm and that would involve a new agreement between the two companies for a licensing deal that would extend for quite some period of time. And also, I am told as well, involves at least the payment of some kind from Apple to Qualcomm of some amount. So, a momentous piece of news here in what has been a brutal battle between these two companies that has gone on for years when Apple decided to stop paying Qualcomm its royalties saying, we are tired -- their words, so to speak -- of paying for your chip sets and your royalties, double paying in a sense, far more than it's worth in terms of overall the percentage of the phone that you're trying to charge us. They have resolved, I am told, they have reached a settlement, and again Tyler, we should be getting news of said settlement fairly soon from what I understand.
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