Apple, Qualcomm reach settlement in all legal disputes

What a wild ride it’s been, folks!

On Tuesday, Apple and Qualcomm announced that they reached a settlement for all ongoing litigation between the two companies, worldwide. The news comes on what would have been the day both sides presented opening arguments in district court in San Diego for Apple’s billion dollar lawsuit against Qualcomm.

The two tech giants have been feuding for years over the IP royalties Qualcomm charges Apple for using their patented chip technology. Apple sued Qualcomm in 2017, accusing Qualcomm of engaging in anti-competitive practices, and asking the courts to have Qualcomm reduce the rates of licensing their IP to what Apple thought was something more reasonable. Qualcomm countersued Apple for breach of contract, and recently won a case in which they alleged patent infringement for their battery IP.

Now, Qualcomm and Apple have apparently been able to reach an agreement at the bargaining table, something that had reportedly eluded them for years. Apple will pay an undisclosed amount to Qualcomm, and the two have agreed upon a six-year licensing agreement, and “multi-year” chip supply deal. In exchange, Qualcomm and Apple are dropping all lawsuits against each other, though there is still the matter of the FTC’s case against Qualcomm for monopolistic practices. 

Apple’s tense relationship with Qualcomm forced them to rely on Intel chips for new iPhones. Qualcomm holds key patents for 5G connectivity, so Apple’s inability to work with the company was jeopardizing the company’s efforts to make a 5G-enabled phone. Now, with the agreement many thought would never happen signed, sealed, and delivered, Apple’s 5G future is looking brighter. And one of the largest corporate tech showdowns in history has come to a close.