“All litigation between the two companies worldwide”
has been dropped, the firms said in a joint statement.
has been dropped, the firms said in a joint statement.
The surprise settlement brings an end to a long-running battle
over the cost of the processors that phones use to connect to mobile networks.
over the cost of the processors that phones use to connect to mobile networks.
The settlement includes a payment from Apple to Qualcomm, but
the firms did not disclose its size.
the firms did not disclose its size.
The two firms have also agreed a six-year global patent
licensing agreement and also agreed for Qualcomm to supply parts to Apple for
multiple years.
licensing agreement and also agreed for Qualcomm to supply parts to Apple for
multiple years.
This means that Qualcomm’s modem chips are likely to be used
again in Apple’s newest iPhone models. The iPhone used to rely entirely on
Qualcomm’s chips, but from 2016 Apple started using rival Intel’s modem chips
in some models.
again in Apple’s newest iPhone models. The iPhone used to rely entirely on
Qualcomm’s chips, but from 2016 Apple started using rival Intel’s modem chips
in some models.
Ben Wood, chief of research at CCS Insight said the settlement
was “a huge vindication for Qualcomm”.
was “a huge vindication for Qualcomm”.
“[It is] likely an acknowledgement by Apple that it had run
out of options, particularly when it comes to 5G.
out of options, particularly when it comes to 5G.
“There was a growing body of evidence that Intel, its
current chipset provider, was struggling to deliver a 5G solution in a timely
manner,” he added.
current chipset provider, was struggling to deliver a 5G solution in a timely
manner,” he added.
After news of the settlement became public, Intel announced it
would be withdrawing from the business of making 5G modems for smartphones.
would be withdrawing from the business of making 5G modems for smartphones.
The row between Apple and Qualcomm began in 2017, when Applefirst filed a legal complaint. It claimed that Qualcomm’s dominance in phone
technology let it get away with charging high fees.
technology let it get away with charging high fees.
Qualcomm has an extensive patent portfolio covering many of the
technologies used in smartphones and derives a significant amount of its annual
revenue through licence payments from phone makers.
technologies used in smartphones and derives a significant amount of its annual
revenue through licence payments from phone makers.
It argued that its technology covers more than just these basic
chips, called modems, and that is why it asked electronics firms to pay the
fees.
chips, called modems, and that is why it asked electronics firms to pay the
fees.