Apple and Qualcomm settle patent fee feud just after trial starts

[Zorro]

Source: San Diego Union-Tribune

Qualcomm and Apple have settled their bitter patent royalty lawsuit by signing a six-year license agreement, with the deal being reached just as lawyers for the companies wrapped up opening statements in the trial in San Diego Federal Court.

The move brings to an end a bitter, two-year legal battle over the way Qualcomm charges smartphone makers for use of their intellectual property. Few details were available, but it includes signing a six-year license agreement between the two companies effective April 1, with a two-year option to extend the deal.

The settlement also includes a multi-year agreement for Qualcomm to supply chips for use in iPhones.

In a statement, Qualcomm said the deal contributes to increased stability in its patent licensing business and “reflects the value and strength” of Qualcomm’s patent portfolio. Both companies declined to elaborate on details of the settlement.

Read more: https://www.sandiegouniontribune.com/business/technology/story/2019-04-16/qualcomm-and-apple-agree-to-drop-all-litigation

[marble falls]

1. I'm sick of Apple using the courts to negotiate deals. Screw Apple.

[BumRushDaShow]

2. Figured this was going to happen

No one was paying much attention to their dispute anymore so....

[mahatmakanejeeves]

3. Qualcomm gets big windfall in surprise settlement, but Apple may have saved the iPhone from 5G doom

Opinion: Qualcomm gets big windfall in surprise settlement, but Apple may have saved the iPhone from 5G doom

Published: Apr 17, 2019 7:10 a.m. ET

Intel wasn’t able to give Apple all it needed for 5G

By THERESE POLETTI
COLUMNIST

Apple Inc. and Qualcomm Inc.’s surprise settlement agreement Tuesday will result in a huge cash windfall for Qualcomm, and puts Apple on a faster path to 5G for the iPhone.

The companies issued a terse joint press release Tuesday that did not disclose any financial terms of a settlement that includes a six-year deal with options for more and payments from Apple. Qualcomm QCOM, +12.73% did add a slide to the news release that it sent reporters and analysts to indicate that it expects an additional $2 a share in profit. Wells Fargo analyst Aaron Rakers estimated, based on that statement, that Qualcomm expects about $2.4 billion as product shipments begin to ramp.

Qualcomm’s shares soared more than 20% in regular trading as the news filtered out. Apple AAPL, +0.45% shares were pretty much flat on the news, since the company will be shelling out possibly several billion dollars in catch-up payments to Qualcomm, plus attorney’s fees, for litigation that has now gone on a little more than two years.
....

NEVER MIND —
Intel quits 5G modem business hours after Apple settles with Qualcomm
Intel was reportedly struggling to produce 5G chips in time for the 2020 iPhone.
TIMOTHY B. LEE - 4/17/2019, 8:02 AM