Qualcomm delayed the announcement of its Q2 earnings report as it reached a patent litigation settlement with Broadcom which will result in Qualcomm paying $891 million to Broadcom over a four-year period.

Qualcomm and Broadcom today announced that they have entered into a settlement and multi-year patent agreement. The agreement will result in the dismissal with prejudice of all litigation between the companies, including all patent infringement claims in the International Trade Commission and U.S. District Court in Santa Ana, as well as the withdrawal by Broadcom of its complaints to the European Commission and the Korea Fair Trade Commission,” said Qualcomm in a statement issued on Sunday.

As per the agreement, the two parties have reached agreements to not assert patents against each other for their respective integrated circuit products and certain other products and services with Broadcom specifically agreeing to not assert its patents against Qualcomm’s clients for Qualcomm''s integrated circuit products used in mobile handsets.

"We believe that this resolution is positive for both Qualcomm and Broadcom, our customers, our partners and the overall industry," said Paul E. Jacobs, chairman and CEO of Qualcomm, and Scott A. McGregor, president and CEO of Broadcom in a joint statement.

"The settlement will allow us to direct our full attention and resources to continuing to innovate, improving our competitive position in this economic downturn, and growing demand for wireless products and services," said Qualcomm’s Jacobs.

Last year in October, Qualcomm had reached an agreement with Nokia wherein th Finnish company was set to pay $ 2.3 billion as part of settlement issues related to patent disputes.