Apple and Qualcomm settle: Here's what it means for your next iPhone

CNET | 4/16/2019 | Shara Tibken
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The frenemies have made up.

Apple and Qualcomm settled a two-year-old battle over patent licensing on Tuesday, a reconciliation that ended a trial that had started just a day earlier. The companies, which had been fighting in courts in China, Germany and other countries, in addition to the US, will end all worldwide litigation.

Cupertino - Apple - Payment - Qualcomm - Statement

Cupertino, California-based Apple will make an unspecified payment to Qualcomm, according to a joint statement. The companies have also reached a six-year licensing agreement that includes a two-year option to extend and a multiyear chipset supply agreement. The agreement went into effect on April 1, the companies said.

The companies didn't say what prompted the change of heart. As recently as January, Apple CEO Tim Cook said the iPhone maker wasn't in talks with Qualcomm. Analysts speculated that Apple's need for 5G chips might have spurred the iPhone maker to negotiate, a view backed up by a Nikkei report that said the company had tested Qualcomm 5G chips as the companies explored a settlement. Shortly after the settlement was announced, Intel, an Apple supplier, said it was exiting the 5G phone modem business.

Apple - Qualcomm - Statement

Neither Apple not Qualcomm commented beyond their statement.

The decision set the San Diego courtroom the companies were appearing in abuzz. Apple and its contract manufacturers had presented their opening arguments and a lawyer for Qualcomm had nearly finished when the announcement was made. A day earlier, the sides had selected a jury that included a pilot, a retired nurse and a former pitcher for the Kansas City Royals.

Settlement - Twist - Fight - IPhone - Risk

The settlement is the latest twist in a fight that could put your iPhone at risk. San Diego-based Qualcomm supplies network connectivity chips for Apple's iPhones and is the world's biggest provider of mobile chips. Its technology is essential for connecting phones to cellular networks. The company derives a...
(Excerpt) Read more at: CNET
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