Qualcomm and Apple are rivals not in the smartphone industry but in the business of mobile processors. It’s been a long-standing battle and we don’t think it will end anytime soon although we believe there can be peace between the two for a while. If you remember more than two years ago, Qualcomm was sued by Apple for unfair licensing practices. Just last year, Qualcomm then said Apple shared trade secrets with rival Intel. We’re used to hearing this and that company filing lawsuits and patent infringements but more often than not, the parties would settle and decide on a litigation strategy.
Looks like Apple and Qualcomm had a fruitful talk since the two just announced an agreement. All litigation between them will be now be dismissed but Apple needs to pay Qualcomm.
This particular discussion includes a six-year license agreement which began last April 1, 2019. A two-year extension may be allowed together with a multi-year chipset supply agreement as per a formal and official public release.
The multi-year agreement between Qualcomm and Apple is officially a global patent license agreement and a chipset supply agreement. The litigation will be dismissed as a direct license between the two will be implemented.
Apple will have to pay royalties to Qualcomm as a one-time payment. The agreement also says that all litigation in other countries will be dismissed and withdrawn. This includes claims involving Apple’s contract manufacturers.
This agreement is expected to deliver increased stability for the licensing business. Qualcomm writes this move reflects the value and strength of the company’s intellectual property.
Apple shared the same information on its newsroom so it is clear the two companies are on the same level. Moving forward, we can expect to NOT hear anything negative between the two companies. Qualcomm and Apple should be settled now to do things right.