Published: Wed, April 17, 2019
Electronics | By Shannon Stone

Apple and Qualcomm settle billion-dollar lawsuit

Apple and Qualcomm settle billion-dollar lawsuit

In a surprise move Apple and integrated circuit vendor Qualcomm have announced that they will discontinue all ongoing litigation worldwide, after the start of what looked set to become a long and complex court case over patent licensing. Intel exits the 5G game Just hours after Apple-Qualcomm deal, chip giant Intel announced its exit from 5G smartphone modem business. This means that the pair will stop any further litigation (as far as this particular matter is concerned).

Apple argued that the chip technology it licensed from Qualcomm was fundamental to how smartphone's work, and that its payments should therefore be at a "reasonable rate", under the law. Per the public details of the Apple-Qualcomm settlement, the two companies have entered into a six-year licensing agreement and multi-year chipset supply agreement.

Apple has been aggressively hiring RF engineers in San Diego, where Qualcomm is located.

Qualcomm's stock rose by more than 20 percent off the back of the announcement, the chip maker's best day in the market since 1999.

The comments come a day after Reuters reported, citing sources and documents, that the United States will push allies at a meeting in Prague next month to adopt shared security and policy measures that will make it more hard for Huawei to dominate fifth-generation (5G) telecommunications networks. 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. Apple executives testified in January at a trial between the U.S. Federal Trade Commission and Qualcomm that Apple's policy is always seek several suppliers.

Apple and mobile chip maker Qualcomm have settled a bitter financial dispute centered on some of the technology that enables iPhones to connect to the internet. Apple accused Qualcomm of charging "excessive royalties" and withholding payments in retaliation for Apple cooperating with a South Korean investigation into the chipmaker. With iPhone X, both Intel and Qualcomm were the suppliers.

Apple and Qualcomm have been fighting in court for years.

Apple will also resume buying chips from Qualcomm.

As a result of this legal wrangling, Apple resorted to exclusively using communications chips from Intel. Apple stock saw little change.

The epic legal battle started in January 2017 when Apple sued Qualcomm for almost $1 billion. The trial ballooned into a $27 billion, five-week affair with Qualcomm wanting damages of its own for breach of contract.

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