Apple and Qualcomm have settled all patent litigation as the parties have agreed to a settlement that requires Apple to make a payment to Qualcomm. The companies have reached a six-year licensing agreement with a two-year option to extend and a multiyear chipset supply agreement. Apple is expected to continue to develop its own chipsets so it can't be held hostage by third party suppliers again. Qualcomm shares jumped 23% after the announcement; its biggest gain in 19 years. The deal was brokered while the jury was hearing the opening statements in court. Qualcomm still faces FTC case related to anticompetitive behavior. Qualcomm said the arrangements are expected to generate $2 per share in additional earnings, though analysts cautioned it was not clear how much of that was coming from the license deal versus the supply agreement. Analysts were also unsure whether Apple’s a onetime payment under the deal represented unpaid royalties from the past two years or a down payment on future royalties. Intel did not immediately respond to Reuters request for comment. Thanks to Jim Kim for the news!