Apple and Qualcomm settle patent fight after one day in court

Huawei talks of selling its 5G chips to Apple | Article

Huawei talks of selling its 5G chips to Apple | Article

One of the most intense high tech legal battle in the recent has now finally come to an end.

Apple alleged that Qualcomm engaged in illegal monopolistic patent licensing practices for its premium cellular modem chips for smartphones. It also included a multiyear agreement for Qualcomm to supply chips to Apple.

Apple and American microchip manufacturer Qualcomm said Tuesday they have agreed to "dismiss all litigation" against each other worldwide in what had been a sprawling battle over royalty payments.

Qualcomm initially filed its first patent infringement back in 2017 arguing that Apple was using patented technology without properly compensating Qualcomm.

Apple and Qualcomm have kicked off their billion dollar antitrust trial in San Diego. This was reflected in the market as the company's stocks jumped up 23 percent after the settlement news broke out.

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The prospective jurors who didn't make it on the panel included a retired employment lawyer, a man who volunteered that he didn't like the direction Apple had been going, and a "private fiduciary". Although it has used both Intel and Qualcomm chips for some time, the dependence on Intel for exclusive supply put it behind Samsung, Huawei and other companies that have been able to develop 5G products. That trial is now over, as are all of Qualcomm and Apple's other legal tussles across the world.

China's Huawei Technologies said on Tuesday it has not held talks with Apple Inc about supplying 5G chipsets, a day after its founder said it was open to selling such chips to the US firm which has yet to unveil dates for a next-gen iPhone. Qualcomm countersued Apple for failing to paying royalties and for working with Intel. Apple will also pay an undisclosed amount to the chipmaker as part of the settlement. Qualcomm demands that companies license its patent portfolio before they can buy the company's chips.

Meanwhile, Qualcomm's claim to fame is that it essentially pioneered CDMA - a type of wireless communication network-in the 1990s and has since made its bread and butter by charging royalties on its 130,000 patents. And the chip maker is still on pins and needles awaiting Judge Lucy Koh's decision related to the FTC v. Qualcomm case heard earlier this year. Apple was barely changed after hours. That means that we'll never see the XMM 8160 5G multi-mode modem, which would be competing against Qualcomm's second-generation Snapdragon X55 5G modem.

According to Apple, this allowed Qualcomm to leverage "its market power to extract exorbitant royalties" and the company later only agrees to lower the royalty rates "in exchange for additional anticompetitive advantages and restrictions on challenging Qualcomm's power, further solidifying its stranglehold on the industry".

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