Qualcomm agrees to pay $891 million to Broadcom for settlement

The ongoing dispute between Qualcomm (NSDQ: QCOM) and Broadcom (NSDQ: BRCM) is coming to an end. The two companies have have entered into a settlement and multi-year patent agreement, under which Qualcomm will pour out $891 million to Broadcom over a four-year period, and the two companies will grant certain rights to each other under their respective patent portfolios. On its side, Broadcom will withdraw all its patent infringement claims.

More specifically, here’s what they’ve agreed on (from the press release):

• Broadcom and Qualcomm agree not to assert patents against each other for their respective integrated circuit products and certain other products and services;
• Broadcom agrees not to assert its patents against Qualcomm’s customers for Qualcomm’s integrated circuit products incorporated into cellular products;
• Qualcomm’s customers do not receive rights to any of Broadcom’s patents with respect to Qualcomm integrated circuit products incorporated into non-cellular products and equipment;
• Qualcomm agrees not to assert its patents against Broadcom’s customers for Broadcom’s integrated circuit products incorporated in non-cellular products;
• Broadcom customers do not receive rights to any of Qualcomm’s patents with respect to Broadcom integrated circuit products incorporated into cellular products and equipment;
• Qualcomm will pay Broadcom $891 million in cash over a period of four years, of which $200 million will be paid in the quarter ending June 30, 2009. The agreement does not provide for any other scheduled payments between the parties.

Other terms of the agreement are confidential…