Qualcomm wins in Apple settlement

SANDIE GO•Qu al comm Inc. on Tuesday won a major victory in settling its wide-ranging legal dispute with Apple Inc., signing a six-year patent licence deal and a supply agreement that could pave the way to getting its modem chips back in the iphone, which featured only Intel Corp. chips last year.

The settlement also includes a payment from Apple to Qualcomm, but the companies did not disclose the amount.

Shares of Qualcomm jumped 23 per cent in New York, while Apple stock was up marginally.

The settlement followed two years of legal conflict between the two companies and came as opening arguments took place at a trial in federal court in San Diego.

Apple had accused Qualcomm of using illegal patent practices to keep a monopoly on modem chips that connect phones to mobile data networks. Qualcomm had said Apple was using its technology without paying for it.

Apple began using Intel modem chips in some iphones in 2016. Apple later stopped paying licence fees to Qualcomm and completely stopped using its chips in iphones in 2018.

A jury of six men and three women was in the process of hearing opening arguments from Apple and Qualcomm when news of the settlement broke.

Judge Gonzalo Curiel briefly dismissed the jury as reporters in the courtroom rushed to confirm the news. Apple’s litigation chief Noreen Krall chatted privately with Qualcomm attorney Mark Snyder before Judge Curiel called the jurors back.

“The two parties have reached the ideal conclusion,” Judge Curiel told the jury before dismissing them. “This development allows these tech companies to get back to business, and it will permit you to get back to your affairs.”