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Apple and Qualcomm bury the hatchet, Apple pays up

(Image credit: Image Credit: Jejim / Shutterstock)

In what the media described as an 'unexpected' turn of events, Apple has capitulated at Qualcomm's lawsuits, and the two companies came to a mutual agreement.

The agreement was confirmed via an official Apple statement (opens in new tab) which said that the two companies will be dropping “all litigation” between them. However, Apple will be paying an undisclosed sum of money to Qualcomm.

The settlement also includes a six-year patent license agreement (already in effect, starting April 1), as well as a two-year option to extend. There’s also a multiyear chipset supply agreement.

This final piece of information proved vital for Qualcomm, whose shares jumped 23 per cent, into a high it hasn’t seen in 19 years, according to Reuters (opens in new tab).

“Shares of Qualcomm jumped 23 per cent to $70.45 in regular trading, their biggest gain in more than 19 years, then hit $75.25 in after-hours trading,” the report reads.

Apple and Qualcomm have gone back and forth for years, arguing over who has the rights to use what, and who needs to pay for using which technologies.

While Apple argued that Qualcomm was curbing competition, Qualcomm argued Apple was using its proprietary tech and demanded some models of the iPhone to be banned from sales in the States.

Qualcomm even succeeded in one occasion, when the jury in the US District Court for the Southern District of California found that Apple used three separate technologies, belonging to Qualcomm, with a multitude of their devices, without the latter’s permission.

The devices that have this technology are iPhone 7, 7 Plus, 8, 8 Plus and X.

Image Credit: Jejim / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.