April 16 (UPI) -- Apple and Qualcomm agreed Tuesday to dismiss all legal disputes between the two companies worldwide.
The settlement includes an unspecified payment from Apple to Qualcomm, which produced computer chips for the former's iPhone, the companies said in a joint statement.
Both companies will also work together going forward because the settlement includes a six-year license agreement effective at the beginning of this month and a multiyear chipset supply agreement.
The companies were set to begin a trial Monday that was expected to last through May related to allegations by Apple that Qualcomm charged an unfair amount to license its patents to place calls, connect to the Internet and other technologies, when supplying Apple with chips for its iPhone.
Qualcomm countered that Apple was withholding payments that were expected as part of a royalty agreement between the two companies.
The chipmaker would have potentially been forced to pay up to $27 billion in damages for overpaid royalty fees and Qualcomm was also seeking more than $7 billion in unpaid royalties from Apple and its supplier.
Apple and Qualcomm were involved in a series of lawsuits throughout the world, including one in San Diego in which Apple was ordered to pay Qualcomm $31.6 million for violating patents for Internet connection, shifting web traffic and graphics processing, and battery life.
Last year, Qualcomm was granted an injunction to ban the sale of certain iPhone models in China due to the alleged patent violations until Apple released a software update addressing the complaint.
Qualcomm stock rose 23.21 percent on Tuesday while Apple stock remained relatively flat.