Nation & World

Apple, Qualcomm settle lawsuits

Dispute started over iPhone chips

According to a statement from the companies, Apple will make a payment of an unspecified amount to Qualcomm. (Reuters
According to a statement from the companies, Apple will make a payment of an unspecified amount to Qualcomm. (Reuters

Apple and Qualcomm announced Tuesday that they have settled their years-long litigation over the use of Qualcomm’s chips in Apple’s iPhones.

The agreement includes the dismissal of all litigation between the two companies worldwide and includes a six-year licensing agreement and a multiyear supply agreement.

According to a statement from the companies, Apple also will make a payment of an unspecified amount to Qualcomm.

The agreement was announced after lawyers for Apple had made their opening argument in what was expected to be a three-week trial in a San Diego federal court.

The case began in January 2017, when Apple said the chipmaker and wireless pioneer had a stranglehold on the market for wireless modem chips that, until recently, had been used in the iPhone.

Apple contends that Qualcomm leveraged its position to overcharge for its patent licenses.

Rather than bend to Apple’s demands, Qualcomm countersued. Apple sued back.

There were more than 80 lawsuits between the two companies in Asia, Europe and the United States.

As the price of an iPhone has increased to levels once unheard of in the wireless market, Qualcomm has been able to command larger payments for its patent portfolio — a fact Apple finds particularly irksome.

Unlike other handset makers, Apple managed to negotiate its fee to about $7.50 per unit, according to court filings and a person familiar with the matter. That’s a price Apple still believes is too high.

Give us feedback

We value your trust and work hard to provide fair, accurate coverage. If you have found an error or omission in our reporting, tell us here.

Or if you have a story idea we should look into? Tell us here.

Give us feedback

We value your trust and work hard to provide fair, accurate coverage. If you have found an error or omission in our reporting, tell us here.

Or if you have a story idea we should look into? Tell us here.