Qualcomm and Apple today announced an agreement to dismiss all
litigation between the two companies worldwide. The settlement
includes a payment from Apple to Qualcomm. The companies also have
reached a six-year license agreement, effective as of April 1,
2019, including a two-year option to extend, and a multiyear
chipset supply agreement.
“The settlement includes a payment from Apple to Qualcomm” is my favorite sentence so far this week.
The provisions of the deal announced on Tuesday suggest at least a
partial victory for Qualcomm’s patent-driven business model, which
has also attracted harsh scrutiny from regulators like the Federal
Trade Commission in a separate case awaiting a federal judge’s
ruling. Qualcomm’s shares, which have been hurt by the two-year
dispute with Apple, jumped 23 percent on word of the settlement.
In agreeing to settle the case, Apple tacitly acknowledged it was
able to live with Qualcomm’s business model — assuming the price
of Qualcomm’s royalties is more to Apple’s liking. The parties
disclosed no financial details, but a slide they distributed
Tuesday said the deal “reflects value and strength of Qualcomm’s