April 19, 2019

Apple and Qualcomm Settle Sweeping Patent Suits

17 April 2019, 04:12 | Cameron Gross

Qualcomm and Apple Settle Long-Running Patent Royalty Dispute

Apple and Qualcomm Settle Sweeping Patent Suits -

Although it has used both Intel and Qualcomm chips for some time, the dependence on Intel for exclusive supply put it behind Samsung, Huawei and other companies that have been able to develop 5G products.

Qualcomm stock rose over 15% on the news of the settlement.

Intel exits the 5G game Just hours after Apple-Qualcomm deal, chip giant Intel announced its exit from 5G smartphone modem business. For example, in one case, Qualcomm asked a U.S. federal judge to ban the sale of iPhones.

If you're interested, you can read the press releases from Apple and Qualcomm in full. The decision allowed Apple to concentrate on making touchscreen computers and helped turn marketing genius Steve Jobs' project into the most valuable company on Earth. Qualcomm had said Apple was using its technology without paying for it.

Apple had argued that Qualcomm's royalty demands meant it was effectively insisting on payment for innovations by Apple - such as touch ID or Apple Pay - that Qualcomm "had nothing to do with".

Apple accused chip-maker Qualcomm of overcharging, a claim the firm denied. The settlement includes a payment from Apple to Qualcomm, although the companies did not specify the amount.

Qualcomm stock soared as much as 22% following the settlement.

Apple has been shifting and trying to open up new businesses: its push into content, for example, and one reason for that is that iPhone have been dropping hard. But now that Apple and Qualcomm are once again able to work together, Intel can expect Qualcomm to supply at least some of the 5G chips in the 2020 iPhone-and Apple would have had more leverage to negotiate better pricing. Qualcomm was seeking over $7 billion in unpaid royalties from Apple and its supplier, as well as other damages totaling billions of dollars.

In a surprise move, Apple and Qualcomm finally agreed to end their long-term beef, and sign a six-year license agreement deal.

Updated Apple and Qualcomm today settled out of court all of their various patent and licensing legal battles against one another around the world.

CNBC was the first to report the settlement, with confirmation from Apple and Qualcomm coming shortly afterward Tuesday.

These comments have now been undermined by rotating chairman Ken Hu, who told the company's annual global analyst summit in Shenzhen that it had no plans to enter the handset chipset market and looked forward to competing with Apple in 5G smartphones. Either Qualcomm had evidence so strong that Apple didn't think it would win the case, or Apple needed something only Qualcomm could provide.

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