Shares in CSR jumped more than 10% in early trading on Tuesday after the British chipmaker agreed to a five-year covenant to temporarily resolve a long-running legal dispute with Broadcom ( BRCM), a U.S. rival, for $67.5 million.

The two companies, which have been sparring over the use of technology for global-positioning systems since 2007, have agreed not to sue each other, or any of their customers, until January 2016 when the covenant expires.

As part of the agreement, CSR will pay Broadcom an initial fee of $5 million plus $12.5 million annually over the next five years. However, the British chipmaker said in a statement that it expected the settlement to reduce its legal fees by at least $10 million annually over the next five years, and that the payments would not be included in the calculation of its underlying profit or underlying earnings per share.

The agreement covers a wide range of litigation, including earlier lawsuits between Global Locate, now owned by Broadcom, and SiRF Technology, acquired by CSR in 2009.

The settlement also nullifies two separate U.S. District Court cases against SiRF products dating back to 2006, as well as orders against SiRF products by the U.S. International Trade Commission.

Broadcom shares, which have risen nearly 50% in the past year, closed on Monday at $45.71.
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