You are here: Home » News-IANS » General
Business Standard

Apple, Qualcomm drop all litigations in race to 5G

IANS  |  San Diego 

In a surprise move, and have announced an agreement to dismiss all ongoing litigations, including with Apple's contract manufacturers, between the two worldwide.

The deal would result in a massive cash windfall for and put on a faster path to 5G for iPhones.

The have reached a global patent license agreement and a chipset supply agreement, said in a statement on late Tuesday.

"The settlement includes a payment from Apple to The also 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," said the Cupertino-based maker.

The Apple-Qualcomm agreement was reached after chip-maker decided to exit the 5G modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, Internet of Things devices and other

"It's likely Intel's decision prompted Apple and Qualcomm's decision to settle -- which came as quite a surprise since it happened just as lawyers were presenting opening arguments at the latest courtroom trial," The Verge reported.

"We are very excited about the opportunity in 5G and the 'cloudification' of the network, but in the modem business it has become apparent that there is no clear path to profitability and positive returns," said

Apple and Qualcomm have been fighting over Qualcomm's patent licensing practices for the last two years.

Apple wanted to pay a lower amount for using Qualcomm technology in its devices. Qualcomm responded by suing Apple for patent infringement and seeking a ban on sales.

"For the most recent iPhones, Apple relied exclusively on to provide the devices' modems since it couldn't reach an agreement with Qualcomm," the report said.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 17 2019. 11:26 IST