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Apple, Qualcomm Settle Royalty Dispute (cnbc.com)

Apple and Qualcomm have settled their royalty dispute, the companies said on Tuesday. From a report: The settlement includes a payment from Apple to Qualcomm as well as a chipset supply agreement, suggesting that future iPhone may use Qualcomm chips. The two companies started proceedings in a trial in federal court in San Diego on Monday, which was expected to last until May. Both sides were asking for billions in damages. In November, Qualcomm CEO Steve Mollenkopf said that he believed that the two companies were on the "doorstep" to settling. Apple CEO Tim Cook contradicted him shortly after, saying that Apple hasn't been in settlement discussions since the third calendar quarter of 2018.

The complicated legal battle centered around modem chips and had been raging in courts around the world since 2016. For years, Apple bought modem chips from Qualcomm, but chafed under Qualcomm's prices and requirement that any company using its chips would also pay licensing fees for its patents. New iPhone models released in 2018 used Intel modem chips, and Apple said in a previous FTC trial that Qualcomm.
UPDATE: Intel announced this afternoon that it plans to exit the 5G smartphone modem business, leaving Qualcomm as the only supplier for Apple's iPhones.

1 of 59 comments (clear)

  1. Re: Double dipping by bws111 · · Score: 1, Troll

    Do you think when you buy a transistor you automatically have a license to build any circuit imaginable with that transistor? A piece of hardware and an application using that hardware are two separate things.

    Your example is odd. Yes, when you buy a modem you expect the modem manufacturer to have paid any required licenses. No shit. But that is not what this is about. This is you bought a modem and wish to use it in a particular way that is also patented. Buying the modem does not give you that license, no matter how you want to spin it.