Apple and Qualcomm Reach Settlement, Agree to Drop All Litigation

Discussion in ' News Discussion' started by MacRumors, Apr 16, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple and Qualcomm just kicked off a legal battle over unpaid royalty rebates in a San Diego court, but the case will be cut short as the two companies have reached a settlement.

    Apple announced the news in a press release this afternoon. Apple says the settlement includes a payment from Apple to Qualcomm and a six-year licensing agreement for Qualcomm's technologies.

    The settlement ends all ongoing litigation between the two companies, including with Apple's contract manufacturers. All companies involved have reached a global patent license agreement and a chipset supply agreement, suggesting Apple may be planning to once again use Qualcomm chips in its devices going forward.

    The legal battle dates back to 2017, when Apple sued Qualcomm for over $1 billion in unpaid royalty rebates, accusing the San Diego chip company of anticompetitive patent licensing practices.

    Apple in its lawsuit claimed that Qualcomm had "unfairly insisted" on collecting royalties for "technologies they have nothing to do with," while Qualcomm said that its technology is "at the heart of every iPhone. The original lawsuit spawned a bitter legal battle between the two companies, which led to patent disputes and import bans in multiple countries, all of which will now be resolved.

    Apple had also stopped using Qualcomm chips in its devices due to the ongoing legal troubles, opting for an all Intel chip lineup in 2018. Recent rumors have, however, suggested that Apple's plans to use Intel's 5G chips for its 2020 iPhones may fall through due to Intel's production delays, which may have been a factor in Apple's decision to come to an agreement with Qualcomm.

    Article Link: Apple and Qualcomm Reach Settlement, Agree to Drop All Litigation
  2. Drogba11 macrumors regular

    Jan 29, 2018
  3. sw1tcher macrumors 68000


    Jan 6, 2004
    So Apple agreed to pay for the patents like they should have from the beginning? Maybe Qualcomm gave them a slight discount?

    What this comes down to is Apple really wanted those Qualcomm 5G wireless chips and Qualcomm really wanted Apple's $
  4. djphat2000 macrumors regular

    Jun 30, 2012
    Willing to bet that Qualcomm took a lot less to just get something. Rather than chance not getting anything.
  5. nvmls macrumors 6502a


    Mar 31, 2011
  6. gsmornot macrumors 68040


    Sep 29, 2014
    Someone decided they had it wrong and let it go or Intel is just not working out so they needed to move on to get ready for the next phone build.
  7. keysofanxiety macrumors G3


    Nov 23, 2011
    This is terrible news. It means we won’t have three years of AngerDanger Rocky-GIF-mockups with these two companies battling it out.
  8. cmaier macrumors G5

    Jul 25, 2007
    Lol. Qualcomm caved because under exhaustion law their business model would have been toast.
  9. FFR Suspended


    Nov 4, 2007
    That was quick, wonder why Qualcomm folded so quickly.
  10. techwhiz macrumors 6502a

    Feb 22, 2010
    Northern Ca.
    More like Apple wanted to get something so they stopped litigation.
    A six year license agreement with a two year option at the end.
    Apple paying Qualcomm.

    Qualcomm stock up more than Apple.
    best outcome for both. Stop paying the lawyers and tying up the courts.
  11. johnyslats macrumors 65816


    Mar 14, 2012
    Leeds, UK
  12. iPhysicist macrumors 65816


    Nov 9, 2009
    A loss for Apple but a win for the consumer! - so the iPhones 7 and 8 are back for sale in Germany within the next days?
  13. Rocketman, Apr 16, 2019
    Last edited: Apr 16, 2019
  14. ersan191 macrumors 65816

    Oct 26, 2013
  15. BruiserB macrumors 68000

    Aug 9, 2008
    Intel stock dropping.....
  16. Baymowe335 macrumors 601

    Oct 6, 2017
    Why do you think Apple got the short end? They were ready for a fight and logic would say the company with more to lose and less money made the largest concession.

    Apple has endless resources, other options, and this isn't their entire business. Qualcomm was barking up the wrong tree and already lost a $1B settlement. Apple likely agreed to settlement when their original complaint was somehow addressed.

    You can see in how the market responded. QCOM up 15% because this albatross has been lifted. It was a HUGE worry for the company and far better for QCOM to cave in and end it.
  17. snowboarder macrumors 6502

    Jun 9, 2007
    Qualcomm modems in the future iPhone? When exactly as my 7+ can not survive much longer...
  18. mookc1 macrumors member

    Dec 11, 2014
    This all about having a date for the prom for a 5G rollout!
  19. BarrettF77 macrumors 6502


    May 24, 2015
    Finally! Now ditch those $hi!!y Intel chips and get back to business. And focus on a ARM processor so you can also dump these garbage overly hot and inneficient intel X86 chips and move us to ARM processing! Power PC to Intel take two!
  20. timber macrumors 6502a

    Aug 30, 2006
    Qualcomm wasn't getting nothing to begging with as Apple stopped buying their stuff.
    And Apple started the all thing..
  21. sw1tcher macrumors 68000


    Jan 6, 2004
    Apple caved.

    If Apple really believed Qualcomm's patents were unfair, they would have fought this to the end. Instead, Apple just signed a 6 year licensing deal with Qualcomm, "including a two-year option to extend, and a multiyear chipset supply agreement."
  22. Carnegie macrumors 6502a

    May 24, 2012

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