Visitors look at a display booth for Qualcomm at the Global Mobile Internet Conference (GMIC) in Beijing. File photo by THE ASSOCIATED PRESS

Apple, Qualcomm settle bitter dispute over iPhone technology

SAN FRANCISCO — Apple and mobile chip maker Qualcomm have settled a bitter financial dispute centred on some of the technology that enables iPhones to connect to the internet.

The surprise truce announced Tuesday came just as the former allies turned antagonists were facing off in a federal court trial that was supposed to unfold over the next month in San Diego. The resolution abruptly ended that trial, which also involved Apple’s key iPhone suppliers.

The deal requires Apple to pay Qualcomm an undisclosed amount. It also includes a six-year licensing agreement that likely involves recurring payments to the mobile chip maker.

Investors reacted as if it were a resounding victory for Qualcomm. The San Diego company’s stock soared 23% to close Tuesday at $70.45. Apple shares edged up 2 cents to $199.25.

Neither Apple nor Qualcomm would comment beyond a brief statement announcing they had resolved their differences. Details about how much Apple and its iPhone suppliers will be paying Qualcomm could emerge in court documents or when the companies announce their latest financial results. Apple is due to report its quarterly results on April 30 while Qualcomm is scheduled to release its numbers on May 1.

Apple had been seeking at least $1 billion for money that Qualcomm was supposed to rebate as part of an earlier licensing agreement. Apple had begun to have misgivings about that deal as it added more features to its increasingly popular line-up of iPhones.

Qualcomm was seeking $7 billion for unpaid royalties it contended it was owed for its patented technology in the iPhone. Apple’s iPhone suppliers, including Foxconn and Pegatron, wanted another $27 billion from Qualcomm.

Apple had already lost an earlier battle with Qualcomm last month when a federal court jury in San Diego decided the iPhone maker owed Qualcomm $31 million for infringing on three of its patents.

Qualcomm still faces other potential fallout from its demands to be paid royalties in addition to the fees it charges for its mobile chips. The Federal Trade Commission has accused the company of using its royalty system to stifle competition in the mobile chip market in another case in which Apple played a central role.

A trial about the FTC’s lawsuit wrapped up in a San Jose, California, court in January, but the judge still hasn’t issued a ruling.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kenney pledges $100M toward Red Deer hospital improvements

Premier Jason Kenney has committed $100 million toward improvements at Red Deer… Continue reading

RDC athlete apologizes for racist slur

A Red Deer College athlete has apologized for using a racial slur… Continue reading

Innisfail man killed in single-vehicle collision

RCMP said car hit a pole just northwest of Innisfail early on Wednesday

Sylvan Lake senior injured when ambulance gurney flips at Red Deer hospital

A Sylvan Lake senior suffered a number of injuries on her way… Continue reading

VIDEO: Grumpy sea lion resists help back to water in Washington state

Crews were able to coax her into a crate to carry her back to water

Your community calendar

Feb. 19 A Liberation of Holland event is being held at the… Continue reading

David Marsden: Finally, a healthy prognosis for our hospital

The announcement of $100 million toward improvements to Red Deer Regional Hospital… Continue reading

Police intervention in Kahnawake would be act of provocation, First Nation says

Protesters reinforced a rail blockade on the Kahnawake Mohawk territory south of… Continue reading

Alberta must juggle sluggish economy, big deficits, lost jobs in upcoming budget

EDMONTON — Alberta is to bring in its new budget Thursday while… Continue reading

Prepare for new coronavirus like an emergency, health minister advises

OTTAWA — Health Minister Patty Hajdu is encouraging Canadians to stockpile food… Continue reading

New Brunswick maintains position on abortions and Canada Health Act

FREDERICTON — The New Brunswick government is standing firm in its position… Continue reading

Bolder actions, words from protesters behind Quebec and Ontario rail blockades

Protesters behind rail blockades in Quebec and Ontario ramped up their actions… Continue reading

Most Read