Apple, Qualcomm settle all legal disputes

Apple and Qualcomm Settle Sweeping Patent Suits - Thurrott.com

Qualcomm and Apple Settle Long-Running Patent Royalty Dispute

This comes just one day into their latest dust up: a $30bn lawsuit brought against Qualy by Apple and its pals in San Jose, USA, a trial that just evaporated as a result of today's peace pact.

The not-so-surprising move, which likely explains the sudden settlement between Apple and Qualcomm, will also see Intel "complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices".

Qualcomm Inc. shares rose $4.25 (+6.03%) in after-hours trading Tuesday.

Who cares about a big fight between two giant companies? While Apple claims some of Qualcomm's patents aren't valid, Qualcomm accuses Apple of violating them - and has sought to ban iPhone sales or imports in several countries, including the US. Why did Apple sue Qualcomm?

This is blockbuster news, folks, and an implicit agreement from Apple that it did, in fact, owe Qualcomm significant patent-based royalties.

Apple is behind rivals such as South Korea's Samsung Electronics Co and Huawei in delivering a phone equipped with fifth-generation (5G) modems that is expected to provide fresh momentum in a slumping global smartphone market.

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A few days earlier, Qualcomm won a point as Apple was ordered to pay $31 million for patent infringement. Apple had begun to have misgivings about that deal as it added more features to its increasingly popular line-up of iPhones. For Apple customers, it may mean getting your mitts on a cool new iPhone sooner (which also makes them richer).

FILE PHOTO: An employee of German Apple retailer Gravis displays an iPhone 7 and 8 in a store in Berlin, Germany, January 3, 2019. The settlement includes a payment from Apple to Qualcomm. It's getting a payment from Apple, and a multi-year deal to supply chips for iPhone. Analysts widely believe that Huawei was watching the outcome of the Apple case to gauge its bargaining position.

Qualcomm alleged Apple breached its agreements "for the express objective of inflicting financial harm on Qualcomm and coercing Qualcomm to accept unfair compensation for its IP", according to Qualcomm's trial brief.

A jury of six men and three women was in the process of hearing opening arguments from Apple and Qualcomm when news of the settlement broke.

The report also notes that Apple is still working on its own 5G modem chips, "but multiple sources said that the company is unlikely to start using its own chips before 2021 because of the high technical barriers and time-consuming testing by telecom operators in markets worldwide".

Qualcomm and Apple have agreed to exit all litigation between themselves this afternoon. Apple will pay Qualcomm an unspecified amount, according to the companies' statement.

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