Apple and Qualcomm settle patent fight after one day in court

Apple chief executive Tim Cook

Apple chief executive Tim Cook

Intel Corporation today announced its intention to exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices. News of the agreement sent Qualcomm's stock up over 20 percent. It's Qualcomm's best day since 1999.

Apple was up less than 1%. Intel, a Qualcomm competitor, sharply dipped on the news before recovering.

In addition to the federal lawsuit, the companies had lodged litigation in dozens of jurisdictions around the world, including Qualcomm efforts to ban iPhone sales in Germany and China and a state court case in San Diego where Qualcomm accused Apple of helping steal its chip secrets to benefit Intel. Qualcomm demanded $7 billion in royalties while Apple asked for $27 billion in compensation for unfair business practices.

Once Qualcomm stopped paying Apple the $1 billion incentive payment, the latter told its contract manufacturers like Foxconn, Pegatron, Compal and Wistron to stop making royalty payments to Qualcomm; the contract manufacturers usually handle the licensing of parts.

Qualcomm initially filed its first patent infringement back in 2017 arguing that Apple was using patented technology without properly compensating Qualcomm. It also announced a multi-year chipset supply agreement. The amount of the payment was not disclosed.

"We have not had discussions with Apple on this issue", Huawei's rotating Chairman Ken Hu said on Tuesday, adding he looked forward to Apple's competition in the 5G phone market. Analysts said not using Qualcomm would hinder Apple's ability to create a market-leading 5G iPhone. So one can expect 5G chips coming in Apple iPhones until 2023 at least.

This unexpected news sparks life into rumors about whether Apples 2020 iPhones would indeed feature 5G modems built by Qualcomm or Intels as initially planned.

In the end, Apple and Qualcomm agreed to dismiss all litigation between them worldwide.

The settlement includes an unspecified payment from Apple to chipmaker Qualcomm.

The news yesterday that the massive, multi-billion dollar legal fight between Apple and chip maker Qualcomm has come to an end has big-time ramifications for Apple - and for the rest of us who use smartphones every day (heck, nearly every minute of every day).

Qualcomm Inc. shares rose $4.25 (+6.03%) in after-hours trading Tuesday. Year-to-date, QCOM has gained 25.23%, versus a 16.61% rise in the benchmark S&P 500 index during the same period.

Notícias recomendadas

  • Man killed and woman badly injured after attack by pet deer

    Man killed and woman badly injured after attack by pet deer

    Paul and Mandi McDonald, 45, were at their Moyhu farm, about 260km from Melbourne, on Wednesday morning when the tragedy occurred. Autumn is mating, or rutting, season for many species of deer, and is a particularly risky time to be around the wild animals.
    'Dogs are cleaner than beards' say Swiss scientists

    'Dogs are cleaner than beards' say Swiss scientists

    The objective of the study was to determine whether it would be hygienic to evaluate dogs and humans in the same MRI scanner. According to researchers at the Hirslanden Clinic in Switzerland , a dog's fur is cleaner than a man's beard .
    What caused Sharks' slow starts to each period in Game 3?

    What caused Sharks' slow starts to each period in Game 3?

    Couture got his second of the series when his pass intended for Joe Pavelski was tipped in by Vegas defenseman Brayden McNabb. Each marker gave the second-year franchise a two-goal advantage, and the second short-handed tally all but clinched Game 2.
  • Here are the winners of the 2019 Pulitzer Prizes

    Here are the winners of the 2019 Pulitzer Prizes

    The Pulitzer Prizes awarded two hard-hitting investigations into the 45th president during its annual ceremony on Monday. The poetry award was given to Forrest Gander's elegiac Be With while Ellen Reid's opera prism won the Pulitzer in music.
    Penguins lose at home to fall into 3-0 hole

    Penguins lose at home to fall into 3-0 hole

    Just as it did back home on Long Island, New York didn't back down against the star-studded Penguins . The Islanders will go for the sweep in Game 4 on Tuesday night at 7:30 p.m.
    Sophie Turner taking a break to focus on mental health

    Sophie Turner taking a break to focus on mental health

    When asked if she believed social media was to blame for her depression, Turner said not entirely. That's something that really interests me". "It's a great feeling".
  • BOLTS JOLTED: Blue Jackets stun NHL-best Lightning in four-game sweep

    BOLTS JOLTED: Blue Jackets stun NHL-best Lightning in four-game sweep

    Fellow defenceman Anton Stralman (lower-body injury) is also out while forward Alex Killorn (undisclosed) is a game-time decision. While this may have an impact on the outcome to a certain degree, it can not be the sole reason for the Lightning's breakdown.
    Notre Dame fire was likely accident, not arson

    Notre Dame fire was likely accident, not arson

    French President Emmanuel Macron ratcheted up the pressure by setting a five-year deadline to restore the 12th-century landmark. Until the Eiffel Tower was unveiled for the 1889 World's Fair, Notre Dame was the tallest structure in the French capital.
    Foxconn chief hints reduced role, will remain chairman

    Foxconn chief hints reduced role, will remain chairman

    Gou also said he plans to write a book to pass on the lessons of his 45 years of management experience. Foxconn Chairman Terry Gou says India's Prime Minister Narendra Modi invited the expansion.
  • Jussie Smollett Loses Lead Role On Broadway Following Alleged Hate Crime Hoax

    Jussie Smollett Loses Lead Role On Broadway Following Alleged Hate Crime Hoax

    Cook County's Inspector General Patrick Blanchard has begun an investigation into how Foxx's office handled the case. In that same op-ed she said she'd "welcome an outside, nonpolitical review of how we handled this matter".
    Ireland set to be warmer than Barcelona, Lanzarote, and Athens this weekend

    Ireland set to be warmer than Barcelona, Lanzarote, and Athens this weekend

    Most of the country will be dry and sunny with above-normal temperatures in the south and west, but cooler along North Sea coasts. But it is not certain how long the sunshine will last, with some parts of the country set for a cooler Easter Sunday than others.
    SpaceX booster accidentally falls into ocean after rough conditions

    SpaceX booster accidentally falls into ocean after rough conditions

    The Dragon spacecraft are used as the final stage of SpaceX missions to resupply the International Space Station. The launch, it said, was scheduled for no earlier than June.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.