After several years of slugging it out in a prolonged patent-based legal battle, Apple and Qualcomm have agreed to a last-minute settlement.
The first issue began when chipmaker Qualcomm, instead of charging Apple a flat license fee for permission to use its patented technology in iPhones, insisted upon a percentage of the iPhone’s value. Apple felt that this was unfair, as Qualcomm was benefiting from all the other features that went into making a device it could sell for a four-figure sum.
The second issue stemmed from the fact that although Apple bought its radio chips from Qualcomm, Qualcomm insisted on a patent license as well, a practice Apple referred to as “double-dipping.”
Apple sued Qualcomm for alleged anti-competitive practices, and Qualcomm countersued when Apple instructed its suppliers to withhold payment.
In the midst of all this, Apple lost its backup plan of going to Intel, which was getting out of the business of producing 5G smartphone modems. Given that Apple’s own 5G chips were still years away, this left Apple having to deal with Qualcomm. Apple later settled the matter at the beginning of the court case.
Per Reuters, Qualcomm has now settled the case, agreeing to pay Apple $75 million in compensation. A preliminary all-cash settlement was filed on Tuesday with the federal court in San Diego.
As part of the terms of the settlement, Qualcomm didn’t admit any wrongdoing.
Stay tuned for additional details as they become available.