Tuesday, 23 July, 2019

Apple and Qualcomm agree to stop suing each other

Huawei talks of selling its 5G chips to Apple | Article Apple and Qualcomm Settle Sweeping Patent Suits - Thurrott.com
Emmett Howard | 17 April, 2019, 13:31

What just happened? Apple and Qualcomm have agreed to end all legal battles worldwide.

In January 2017, Apple filed a lawsuit against the chipmaker, accusing itof using illegal patent practices to keep a monopoly on modem chips (which connect phones to mobile data networks). It also includes a six-year licensing agreement that likely involves recurring payments to the mobile chip maker. This means that the pair will stop any further litigation (as far as this particular matter is concerned).

This was discovered when Apple and Qualcomm released a joint press release detailing their agreements to drop litigations, just as Qualcomms head lawyer finished delivering opening remarks.

Prior to the Qualcomm settlement, Intel was Apple's sole modem supplier for the iPhone XS and XR.

The royalty agreement - pertaining to the licensing of Qualcomm patents for use in Apple products - will last for six years, effective April 1, 2019.

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

Shares of Qualcomm jumped 23 percent to $70.45 in regular trading, their biggest gain in more than 19 years, then hit $75.25 in after-hours trading.

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In recent weeks, there have been a lot of rumors that Huawei may become a potential modem supplier for Apple's first generation 5G iPhone. But Qualcomm stopped making this payment after Apple spoke out against it during a hearing held by the South Korea Fair Trade Commission.

Apple and Qualcomm have settled their patent royalty dispute.

Apple's litigation chief Noreen Krall chatted privately with Qualcomm attorney Mark Snyder before Judge Curiel called the jurors back into the courtroom.

Finally, the U.S. FTC case against Qualcomm that makes numerous same claims of anticompetitive behavior remains unresolved, with a decision expected at any time.

"In order to purchase Qualcomm chips or obtain access to patents pledged to a cellular standard, Qualcomm demands that third parties pay Qualcomm a royalty much greater than the value of Qualcomm's contribution to the standard", Apple argues. But this afternoon, the companies announced that they had reached a deal in the case. Apple, on the other hand, saw a small dip before going up by barely 1%. It's getting a payment from Apple, and a multi-year deal to supply chips for iPhone. Now that the settlement has taken place, it means that future iPhones may once again feature Qualcomm-branded 5G modem chips.

Apple has an experience of working with a number of modem manufacturers for its iPhone handsets for LTE and 4G connectivity.

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