One of the long-standing disputes over handset-technology patents has been almost settled, with the world's largest mobile-phone chips' maker, Qualcomm Inc agreeing to make a $891-million payment to its Irvine, California-based rival Broadcom Corp, over a four-year period.

This agreement makes another one of those patent infringement battles which Qualcomm has lost to Broadcom in the past few years. The two companies have decided to license each other's patents, and to avoid legal hassles in future. Qualcomm said that such a deal would have no bearing on the company's revenue model of licensing its technology to handset makers as well as phone- service providers.

Though a huge settlement amount has been agreed upon by Qualcomm, it still makes sense as it would bring to an end to its bitter battle with Broadcom, in three continents, since 2005. In May 2007, Qualcomm had lost a trial to Broadcom, due to which it was forced to restrict some of its phone-chip sales; and a hearing scheduled next month would likely have carried the limitation further.

About the deal, analyst Ed Snyder, of Charter Equity Research, said: "It's clearly costing Qualcomm a lot but it's best for both companies to move on. It's a win for Broadcom."

As per the terms of the latest settlement, Qualcomm will make a $200-million first payment to Broadcom by June 30.