Apple and Qualcomm Agree to a Settlement, Ending All Litigation

Apple and Qualcomm have just announced a settlement deal, ending all litigation by both companies.

In a statement to the media and iPhone in Canada, Apple said:

Qualcomm and Apple today announced an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.

The agreement “ends all ongoing litigation, including with Apple’s contract manufacturers,” while both companies have “reached a global patent license agreement and a chipset supply agreement.” Expect Qualcomm chips to again appear in the iPhone.

The surprise settle comes as both parties had begun their court case in San Diego, California, with a full jury selected. Both CEOs of Apple and Qualcomm were set to testify in the legal fight, which was expected to have nearly $30 billion USD on the line.

Apple has been in a legal dispute with Qualcomm over the latter’s patent practices over the past few years. Apple contends Qualcomm was charging higher than normal licensing fees and monopolistic in nature given its dominant position in the marketplace. Apple eventually switched to Intel to supply modems for last year’s iPhones, while Qualcomm was able to win court cases banning certain iPhone sales in Germany and China. The messy legal drama is now over with this settlement so expect Qualcomm to remain in Apple’s supply chain now, given this new license agreement.

…more to follow

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