In December 1999, Qualcomm sold its manufacturing interests to Kyocera Corporation, a Japanese CDMA manufacturer and Qualcomm licensee. Qualcomm's infrastructure division was sold to competitor Ericsson in 1999 as part of an out-of-court agreement for a CDMA patent dispute that started in 1996. The sale of the infrastructure division marked the beginning of an increase in Qualcomm's stock price and stronger financial performance, but many of the 1,200 employees involved were discontented working for a competitor and losing their stock options. This led to a protracted legal dispute regarding employee stock options, resulting in $74 million in settlements by 2005.
