Apple, Qualcomm settle all legal disputes

Viva Tung  CNET

It looks as though the other shoe has dropped with followings Apple's surprise settlement with Qualcomm over patent licensing fees (as we predicted). The settlement, which includes an agreement by Apple to use Qualcomm's chips, may help Apple's plans to add high-speed 5G service to its future phones.

Qualcomm initially filed its first patent infringement back in 2017 arguing that Apple was using patented technology without properly compensating Qualcomm.

According to the release, the settlement involves a payment from Apple to Qualcomm for an undisclosed amount, a six-year license agreement effective as of April 1 2019, which includes a two-year option to extend.

The two companies started proceedings in a trial in federal court in San Diego on Monday, which was expected to last until May. News of the surprise truce Tuesday sent Qualcomm stock soaring more than 23 percent, to almost $70.50 a share.

Apple makes iPhones, iPads, Mac computers and other computing...

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On the other hand, Qualcomm has talked about the settlement of all litigation against Apple in a blog post.

China's Huawei Technologies said on Tuesday it has not held talks with Apple Inc about supplying 5G chipsets, a day after its founder said it was open to selling such chips to the USA firm which has yet to unveil dates for a next-gen iPhone. "I believe both Apple and Qualcomm got deeper into this than they wanted to - Apple was challenging Qualcomm's most profitable business model, licensing, and Qualcomm was accusing Apple of IP theft and lack of payment", said Patrick Moorhead, president and principal analyst at Moor Insights & Strrategy. Our subscribers rely on FierceWireless as their must-read source for the latest news, analysis and data on this increasingly competitive marketplace. Why did Apple sue Qualcomm?

His comment comes a day after CNBC published https://www.cnbc.com/2019/04/15/cnbc-transcript-ren-zhengfei-huawei-founder-and-ceo.html an interview with Huawei founder Ren Zhengfei that the firm was "open" to selling its 5G chips to Apple. Apple was barely changed after hours. For example, in one case, Qualcomm asked a United States federal judge to ban the sale of iPhones.

Apple will also resume buying chips from Qualcomm. This goes for all court cases between the two companies, for all instances of litigation around the world.

Apple also claimed that Qualcomm has withheld around $1 billion in rebates it was supposed to pay Apple as reimbursement for the patent royalties.

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