Apple and Qualcomm reach settlement in patent case, agreeing to drop all litigation
Apple and Qualcomm have announced they have reached a settlement in their royalty dispute, with both companies agreeing to drop all litigation.
Shared within a press release published today, Apple has announced that it has reached a deal with Qualcomm that will see it make a settlement payment to the chipmaker. Furthermore, the two have reached a six-year license agreement effective as of April 1, 2019.
The case dates back to 2017, when Apple sued Qualcomm for over $1 billion in unpaid royalty rebates, accusing the San Diego chip company of anticompetitive patent licensing practices.
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
Apple’s payment to Qualcomm likely relates to the some $7 billion Apple and its suppliers withheld in royalty payments.
Both companies haven’t shared the exact details of the settlement, but the news today likely means that Qualcomm modems will return back to iPhone models after the company switched entirely to Intel with the iPhone XS, iPhone XS Max and iPhone XR in 2018.
Apple claimed in its lawsuit that Qualcomm had “unfairly insisted” on collecting royalties for “technologies they have nothing to do with,” while Qualcomm said that its technology is “at the heart of every iPhone.