After two-year long battle, Qualcomm and Apple in a surprise move have announced an agreement to dismiss all litigation between the two companies worldwide. Qualcomm also said that worldwide litigation will be dismissed and withdrawn, including claims involving Apple’s contract manufacturers. The settlement includes a one-time payment from Apple to Qualcomm, but the amount was not disclosed.
The companies have also announced that they have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multi-year chipset supply agreement. Qualcomm said that this agreement contributes to increased stability for licensing business and reflects value and strength of Qualcomm’s intellectual property.
Since early 2017, Qualcomm and Apple have been waging a wide-ranging legal war over royalties that Qualcomm charges for use of its patented cellular technology. As for Apple, it no longer pays royalties to Qualcomm and has also ditched using Qualcomm chips from the latest iPhone models. Qualcomm has sought to ban iPhone imports in the U.S., Germany, and China.
With the new multi-year chipset supply agreement, we can expect Qualcomm’s 5G modems to power next year’s iPhones.