Qualcomm and Apple extend global patent licensing agreement: What to know

In a significant move, Qualcomm announced on Thursday that it has extended its chip technology partnership with Apple effective from April 1 of next year.

The primary motive behind the partnership was rooted in a 2019 settlement that ended a two-year legal battle concerning mobile patent royalties, when both companies announced a truce in April 2019 as a US jury legal proceeding between them was commencing in San Diego.

In this connection, John Han, Executive General Manager of Qualcomm said: “We are pleased to extend the Apple license agreements”

Under the agreement, Apple made an undisclosed payment to Qualcomm, as the companies resolved all global disputes and agreed to a six-year global patent licensing deal starting from April 1, 2019.

The relationship between Apple and Qualcomm is one of the most crucial in Silicon Valley focusing on the geopolitical struggle for hardware independence and control.

Earlier Apple sued the chipmaker in 2017 over excessive royalties resolving a bitter, two-year global legal battle that abruptly ended with a 2019 settlement and laid the foundation for their active licensing agreement. 

In addition, this licensing 2017 extension mechanism means that even as future iPhones are powered by Apple’s own silicon, Qualcomm will continue to secure high-yield patent returns.