Qualcomm and Apple agreed to abandon all patent disputes
As reported last month, Qualcomm and Apple agreed to abandon all patent disputes. According to what was reported in the media, both tech companies signed a new six-year agreement for the use of processors in mobile devices. In the agreement, both companies agree not to take future legal actions against each other.
The fight that took years of disputes in the courts across several countries ends with a payment from Apple to Qualcomm.
The origin of the dispute was based on different positions. Qualcomm claimed that Apple infringed on a series of patents owned by Qualcomm. Apple argued that Qualcomm was taking advantage of its dominant position in the market to charge abnormally high licensing fees. The lawsuits began in 2017.
After the announcement of the agreement, Qualcomm shares rose more than 20%, and Apple’s share value remained stable. Thus, Apple will make a single payment to Qualcomm, and both companies signed a license and offer agreement chips that took effect on April 1, in which Apple will pay royalties to Qualcomm as agreed to by both companies.
According to the Bloomberg news agency, Dan Ives, an analyst at Wedbush Securities, said that there were concerns that this was going to be a nasty battle in court, and Apple realized, despite wanting to defend their position, based on 5G and licensing issues, it was best for the company to reach an agreement. Both Apple and Qualcomm had more to lose in a trial than with an agreement.
Alternatives to litigation
Faced with the possibility of litigation, there are alternatives that business lawyers usually recommend. While there is the possibility of an agreement, the resolution of a problem between parties is an excellent alternative,avoiding the high costs of a trial, as well as invaluable time and resources.
Both parties, with the assistance of a business lawyer, can resolve a dispute economically both in terms of money and time, which is ultimately one of the most valuable resources of a company.