Apple and Qualcomm Have Officially Agreed to ‘Drop All Litigation,’ Global Patent License & Chipset Supply Agreement Reached
In an official press release, it has been confirmed that both Apple and Qualcomm have both agreed to drop all litigation.
Apple and Qualcomm have been in patent and licensing disagreements for a long while that has caused nothing but trouble for both companies. But now, it appears as though everything has changed as both companies have dropped all litigation and have reached a ‘global patent license agreement and a chipset supply agreement.’
Here’s the complete press release straight from Apple itself on the matter:
San Diego and Cupertino, California — Qualcomm and Apple today announced an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.
Qualcomm invents breakthrough technologies that transform how the world connects, computes and communicates. When we connected the phone to the Internet, the mobile revolution was born. Today, our inventions are the foundation for life-changing products, experiences, and industries. As we lead the world to 5G, we envision this next big change in cellular technology spurring a new era of intelligent, connected devices and enabling new opportunities in connected cars, remote delivery of health care services, and the IoT — including smart cities, smart homes, and wearables. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, all of our engineering, research and development functions, and all of our products and services businesses, including, the QCT semiconductor business. For more information, visit Qualcomm’s website, OnQ blog, Twitter and Facebook pages.
Given the highlight of 5G in the press release it’s fair to say that Apple and Qualcomm both have struck a licensing agreement where the chip giant will end up supplying 5G modems for the next iPhone. Previous reports have suggested that there would be no 5G iPhone this year, but given how the litigation has ended, it appears as though this is no longer the case.
Personally, I believe this is a huge win for consumers as the latest technologies, especially 5G, will make it to the hands of millions without any sort of hurdles or bottlenecks. Given that this is a six-year agreement, therefore it is safe to say that things are looking solid for Apple devices in the time to come.
It all started back in 2017 when Apple sued Qualcomm over unpaid royalty rebates ($1 billion) and accused the chip maker of anti-competitive patent licensing practices in the industry. Since then Apple has been slowly and steadily moving away from using Qualcomm chips in its iPhones and iPads, heavily relying on companies such as Intel. The litigation even reached a point where the iPhone saw itself banned in several countries. Now though, we can expect a cool working relationship between both companies, and hopefully an iPhone and iPad that can play nicely with 5G by the end of this year.