Apple and Qualcomm settle licensing dispute in the midst of trial

CNET | 4/16/2019 | Shara Tibken
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Apple and Qualcomm have been battling over licensing fees.

Apple and Qualcomm have settled their patent licensing battle, ending the two-year battle as their trial kicked off in San Diego.

Sides - Agreement - Time - Lawyers - Arguments

The two sides announced their agreement at the same time lawyers presented opening arguments in a courthouse in Southern California. Apple and its contract manufacturers had presented their statements, and Qualcomm's head lawyer had nearly finished his remarks when the courtroom buzzed with the news.

"Qualcomm and Apple today announced an agreement to dismiss all litigation between the two companies worldwide," the companies said in their joint press release. "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 - Qualcomm - Press - Release

Apple and Qualcomm declined to comment beyond the press release.

As a result of the settlement, all worldwide litigation will be dismissed, including the claims involving Apple's contract manufacturers. The companies were battling in courts in China, Germany and other regions.

Qualcomm - Share - Earnings - Product - Shipments

Qualcomm said it now expects to report an additional "incremental" $2 per share in earnings as product shipments ramp. It didn't specify the timeframe for the money but will report earnings May 1.

The settlement marks a sudden and surprise ending to the two-year battle. Apple in January 2017 had accused Qualcomm of anticompetitive practices that've raised chip prices, restricted competition and hurt customer choice. Qualcomm had countered that the iPhone wouldn't be possible without its technology, and it deserved to be paid for its innovation.

Trial - Licensing - Monday - Jury - Selection

The five-week, $27 billion trial over licensing kicked off Monday with jury selection and continued Tuesday morning with opening statements. The jury trial was being argued before US District Court Judge Gonzalo P. Curiel of the Southern District of California. The...
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