Apple and Qualcomm Agree to Settle All the Legal Disputes and Sign a Multi-Year Contract

Apple and Qualcomm Agree to Settle All the Legal Disputes and Sign a Multi-Year Contract

Business

On Tuesday, Apple and Qualcomm settled all of the legal disputes between them. The news is the latest chapter which reveals the end of the two-year-long legal fight between the two tech giants. A trial between both took place yesterday in a San Diego court. Though the news of settlement resulted in a rise of more than 20% in Qualcomm stock. The agreement includes an unstated amount from the phone maker, Apple to chipmaker Qualcomm. After so many disputes, both will still work together. Now Apple and Qualcomm have issued a new six-year agreement along with an alternative to adding two more years. Even more, the companies agreed on a multi-year chipset agreement.

Apple and Qualcomm had been fighting over patent royalties. The chipmaker appeals that companies license their patent information before buying the company’s chips. Their attorneys have been struggling since 2017. Apple filed a lawsuit against Qualcomm claiming it of extortion. At the time, the Federal Trade Commission filed an independent case against the chipmaker. From that time, Qualcomm accused Apple of patent violations in courtrooms worldwide. The chip maker even won a judgment in its favor from a Chinese court last year. On the other hand, Apple claimed Qualcomm of retaining parts from suppliers for getting high royalties. Qualcomm backfired saying Apple had pressurized suppliers not to pay more.

Apple claimed that the chipmaker charged an unreasonable amount to license its patents for technologies like making a call or connecting to the internet. Now, Apple and Qualcomm are covering the ax with a settlement to dismiss all legal cases between the two companies across the world. Under the multi-year agreement, Qualcomm will continue offering Apple with chips. Still, it is unclear what caused the sudden end. It seems like, the settlement news between the two companies has affected some other companies. Intel has announced that it will step out of the 5G smartphone modem business. It intends to focus on developing 5G infrastructure opportunities.

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