Imagination Technologies Remains For Sale as No Progress Made in Dispute With Apple

[MacRumors]

British chipmaker Imagination Technologies today disclosed that its formal sale process continues, despite successful restructuring and a return to profitability in its fiscal year ended April 30, 2017. It also said it is reviewing options in its dispute with Apple, but added that no progress has been made.

"The management team have done a tremendous job over the last year, turning the business around, returning it to profitability and with a clear strategy for growth," said chairman Peter Hill. "It's therefore highly regrettable that this progress has been so severely impacted by the stance taken by Apple."

Earlier this year, Apple informed Imagination that it plans to stop using the company's patented PowerVR graphics technology in devices like the iPhone in between 15 months and two years. Accordingly, Apple said it will stop making royalty payments to the British firm by late 2018 or early 2019.

Apple instead plans to use its own in-house graphics architecture, eliminating the need to pay royalties for the PowerVR technology.

Apple is Imagination's biggest customer, reportedly accounting for up to half of the company's revenue. The chipmaker's stock plunged as much as 70 percent after it revealed Apple's plans, as analysts predict the company could become loss-making within two years without royalties from iPhone sales.

Imagination insists that Apple is making "unsubstantiated assertions," as the iPhone maker has supposedly yet to present any evidence to prove that it will no longer require the British firm's technology, at least not without violating its patents, intellectual property, and confidential information.

"Apple's unsubstantiated assertions and the resultant dispute have forced us to change our course, despite the clear progress we have been making," said Andrew Heath, CEO of Imagination Technologies.

Imagination said, following interest in the entire company, it decided to initiate a formal sale process on June 22. The chipmaker today disclosed that preliminary discussions continue with potential bidders.

Article Link: Imagination Technologies Remains For Sale as No Progress Made in Dispute With Apple

 

[imran5720]

i'll buy if its less than 1000

 

[diegov12]

British chipmaker Imagination Technologies today disclosed that its formal sale process continues, despite successful restructuring and a return to profitability in its fiscal year ended April 30, 2017. It also said it is reviewing options in its dispute with Apple, but added that no progress has been made.

"The management team have done a tremendous job over the last year, turning the business around, returning it to profitability and with a clear strategy for growth," said chairman Peter Hill. "It's therefore highly regrettable that this progress has been so severely impacted by the stance taken by Apple."

Earlier this year, Apple informed Imagination that it plans to stop using the company's patented PowerVR graphics technology in devices like the iPhone in between 15 months and two years. Accordingly, Apple said it will stop making royalty payments to the British firm by late 2018 or early 2019.

Apple instead plans to use its own in-house graphics architecture, eliminating the need to pay royalties for the PowerVR technology.

Apple is Imagination's biggest customer, reportedly accounting for up to half of the company's revenue. The chipmaker's stock plunged as much as 70 percent after it revealed Apple's plans, as analysts predict the company could become loss-making within two years without royalties from iPhone sales.

Imagination insists that Apple is making "unsubstantiated assertions," as the iPhone maker has supposedly yet to present any evidence to prove that it will no longer require the British firm's technology, at least not without violating its patents, intellectual property, and confidential information.

"Apple's unsubstantiated assertions and the resultant dispute have forced us to change our course, despite the clear progress we have been making," said Andrew Heath, CEO of Imagination Technologies.

Imagination said, following interest in the entire company, it decided to initiate a formal sale process on June 22. The chipmaker today disclosed that preliminary discussions continue with potential bidders.

Article Link: Imagination Technologies Remains For Sale as No Progress Made in Dispute With Apple

Apple gave them a way out last year, they didn't take it, thinking they were to important to fail.

 

[Avieshek]

Can they be bought with a Credit Card?

 

[Schizoid]

Fiver?

 

[meaning-matters]

Unimaginative logo

 

[Michaelgtrusa]

Keep it in England's hands. If Apple is stealing IP, then they should be held accountable and I wonder if thats the case.

 

[cmaier]

Imagination insists that Apple is making "unsubstantiated assertions," as the iPhone maker has supposedly yet to present any evidence to prove that it will no longer require the British firm's technology, at least not without violating its patents, intellectual property, and confidential information.
​

That's not how it works. If Imagination thinks Apple is infringing its IP, then it has to prove it. Apple doesn't have to prove the reverse.

 

[citysnaps]

An excellent decision on Apple's part.

Sometimes you just need to move on and go with your own tech.

 

[tubeexperience]

Qualcomm probably buys it.

 

[JPack]

When A11 is released this fall, we'll know how far Apple has come with their GPU design.

If the chip is PowerVR-free, the sale of Imagination will be even more difficult.

 

[apolloa]

Keep it in England's hands. If Apple is stealing IP, then they should be held accountable and I wonder if thats the case.

I think so, and if it does happen, with any luck Imagination will have them in British courts and Apple will find it a lot tougher to win.
I can't see how they won't steal their designs, or just use them for free, not like it's the first time Allles done this...

 

[Cronowerx]

Oy vey!

 

[sinsin07]

A couple of questions:
Do all mobile phone makers use Imagination Technologies PowerVR graphic technology, like say Samsung, HTC, LG etc?
If other mobiles vendors use something else, anyone know what?

 

[cmaier]

I wonder if

I think so, and if it does happen, with any luck Imagination will have them in British courts and Apple will find it a lot tougher to win.
I can't see how they won't steal their designs, or just use them for free, not like it's the first time Allles done this...

british courts have no jurisdiction over sales anywhere else in the world, so good luck
[doublepost=1499198312][/doublepost]

A couple of questions:
Do all mobile phone makers use Imagination Technologies PowerVR graphic technology, like say Samsung, HTC, LG etc?
If other mobiles vendors use something else, anyone know what?

Many use ARMs GPU designs.

 

[sinsin07]

I wonder if

british courts have no jurisdiction over sales anywhere else in the world, so good luck
[doublepost=1499198312][/doublepost]

Many use ARMs GPU designs.

Thanks, I just did some further digging for my own curiousity and found this:
Without Apple Inc., Imagination Technologies' PowerVR Has No Future

 

[cmaier]

I think so, and if it does happen, with any luck Imagination will have them in British courts and Apple will find it a lot tougher to win.
I can't see how they won't steal their designs, or just use them for free, not like it's the first time Allles done this...

Is ARM stealing their designs? Is AMD? Is NVIDIA? Intel?

Isn't it possible there are many ways to do gpus?

 

[AngerDanger]

"Alright, we're Imagination Technologies, and we need a logo that conveys imagination. What are you thinking of doing?"

"How 'bout a circle next to a square?"

"OHMYGODYES"

 

[flat five]

I think so, and if it does happen, with any luck Imagination will have them in British courts and Apple will find it a lot tougher to win.
I can't see how they won't steal their designs, or just use them for free, not like it's the first time Allles done this...

i really don't think this is about Apple trying to save money or not pay Imagination.
they currently license the tech for about $100million per year... in devices that brought Apple over $150billion in revenue.. like, Apple is getting a serious bargain from Imagination.. for Apple to do what's being hinted at (in house GPU design), they're going to be spending much more than they spend on Imagination in R&D costs alone.

Apple's goal, it seems to me, is to put themselves in position to continue offering users a different experience than what everyone else is doing.. and the more everyone is using the same technology, the more difficult it becomes for Apple to differentiate themselves from the pack..

it appears (to me at least), Apple is positioning itself for the next 10years (and beyond).. the last 10 years has been iOS.. the next 10 will/could likely be viewed as iOS 2.0.. the AR years.

their own GPU along with their own software (Metal) gives them a pretty serious advantage, or at least a very strong standing amongst other players, moving into the future (imo).

 

[cmaier]

i really don't think this is about Apple trying to save money or not pay Imagination.
they currently license the tech for about $100million per year... in devices that brought Apple over $150billion in revenue.. like, Apple is getting a serious bargain from Imagination.. for Apple to do what's being hinted at (in house GPU design), they're going to be spending much more than they spend on Imagination in R&D costs alone.

Apple's goal, it seems to me, is to put themselves in position to continue offering users a different experience than what everyone else is doing.. and the more everyone is using the same technology, the more difficult it becomes for Apple to differentiate themselves from the pack..

it appears (to me at least), Apple is positioning itself for the next 10years (and beyond).. the last 10 years has been iOS.. the next 10 will/could likely be viewed as iOS 2.0.. the AR years.

their own GPU along with their own software (Metal) gives them a pretty serious advantage imo.

I agree. They've decided that, for their own purposes, there is a better architecture than imagination's, with the added benefit that they can control it and use it as a differentiator. They are probably going to come up with their own thing that scales from watch to desktop, and provides optimized performance per watt with their own software technologies.

 

[flat five]

Is ARM stealing their designs? Is AMD? Is NVIDIA? Intel?

Isn't it possible there are many ways to do gpus?

heh, tell that to nVidia.
they think they invented the modern GPU and everybody should be paying them royalties.
(good thing the courts didn't agree )

 

[jasonklee]

I've done this before with an old girlfriend. I demanded she prove she could be happier with a man other than me, otherwise she is obligated to stay chained in my basement.

 

[CWallace]

If Apple is stealing IP, then they should be held accountable and I wonder if thats the case.

Considering how often Apple gets sued for patent infringement by "patent trolls", I would expect they've done their due diligence to ensure that they have removed any proprietary Imagination IP from their design. As cmaier noted, it is up to Imagination to prove that Apple is illegally using their IP. If they feel they have a case, they'll sure when Apple launches their first GPU after the license agreement is terminated.

I think so, and if it does happen, with any luck Imagination will have them in British courts and Apple will find it a lot tougher to win.

The Rule of Law still applies in the UK so I would expect if Imagination does sue in a UK court, the case will be adjudicated on the facts and not the local interest.

I can't see how they won't steal their designs, or just use them for free, not like it's the first time Allies done this...

While Steve Jobs quoted Pablo Picasso about "good artists copy; great artists steal", Picasso meant that great artists learn from past masters, incorporating what they like into their own idea and creating something unique from it.

So Apple will have certainly learned from using Imagination's PowerVR IP under license on how to create a mobile device GPU, but they will not just simply copy it - which would be IP infringement. They will instead use it as the inspiration to create their own, unique GPU that does not infringe (in Apple's mind) on Imagination's IP.

 

[scaramoosh]

Apple killed them on purpose, the EU need to fine them.

 

[cmaier]

Apple killed them on purpose, the EU need to fine them.

Lol. So it's your theory that for some reason apple has some sort of obligation to buy imagination's technology forever?