Qualcomm To Get A Bite Of Apple: Both Agree To End All Litigation And Sign A Six-Year License Agreement
After a years-long patent dispute battle, Apple and Qualcomm on Tuesday (16 April) agreed to end all litigation pending between them across the world and signed a new licensing deal, reports Wall Street Journal (WSJ).
Curiously, the settlement between the two technology giants came just hours after both the sides presented their opening arguments in a trial. As per the new deal, Apple will make undisclosed payments to the chip maker.
In a joint statement, the companies added that they had reached a six-year license agreement and a multiyear deal for Qualcomm to supply Apple with modem chips.
Allegations And Counter Allegations
In the patent struggle, Qualcomm had alleged that some of the iPhones imported into the US by Apple contained parts violating technology patents held by it. The technology patents in question are vital to the ability of iPhones to connect with the internet.
The company has also accused Apple of embezzling its chip-making secrets to its competitor, Intel Corporation. On the other hand, Apple has continuously questioned Qualcomm’s patent licensing practices, terming them ‘monopolistic’.
At stake was the future of Qualcomm’s licensing model and royalties running to the tune of billions of dollars that Apple has either paid or kept.