Apple and Qualcomm finally settle legal dispute
- 9 months ago
Apple and Qualcomm’s bitter legal dispute has finally ended as the two tech companies settled their royalty dispute.
The settlement includes a payment from Apple to Qualcomm including a chipset supply agreement in which Apple will buy Qualcomm chips for future iPhone models.
Qualcomm had its best day since 1999 as its shares surged by 20% after the release, boosting its market cap by about $14.5 billion to more than $84 billion.
Apple edged slightly higher by 1% while Intel, Qualcomm’s competitor, slid temporarily.
The two companies started proceedings in a trial in federal court in San Diego on Monday, which was expected to last until May with both sides demanding for billions in damages.
The antitrust case was originally filed by Apple in early 2017 and stuck in a deadlock in courts which included a trial between Qualcomm and the U.S. Federal Trade Commission.
For years, Apple purchased modem chips from Qualcomm, but it chafed under Qualcomm’s prices and requirement that any company using its chips would also pay licensing fees for its patents.
Apple argued that Qualcomm was abusing its position as one of the only suppliers for cellular technology, and Qualcomm contended that Apple was withholding payments that the two companies had hammered out as part of a royalty agreement.
According to Qualcomm, the new license between the two companies is for a period of six years, with a two-year option to extend.
It includes a one-time payment from Apple to Qualcomm however the amount of the payment was not disclosed by neither side.
Source: Smart Trend Team