Apple, Qualcomm end massive court fight

Leading chipmaker Qualcomm and Apple on Tuesday agreed to drop all litigation between them across the globe, ending a web of legal battles the tech giants have fought on multiple continents for two years.

The surprise settlement came on Tuesday, just as Apple and Qualcomm were gearing up for a significant court battle in San Diego.

The terms: Qualcomm and Apple on Tuesday afternoon announced an agreement to dismiss all litigation between the companies, which includes a payment of an undisclosed amount from Apple to Qualcomm.

The settlement includes a six-year patent licensing agreement, effective at the beginning of April, Apple said in a statement. The agreement can be extended for two years.

Qualcomm as part of the settlement has agreed to supply parts to Apple over the span of multiple years, meaning it could start supplying chips to Apple again.

Qualcomm will end litigation with Apple’s contract manufacturers.

What they were fighting about: In courts around the world, Apple has claimed Qualcomm boosts its prices excessively and accused the chipmaker of acting as a monopoly as it charged fees for patents. Qualcomm has accused Apple of stealing its intellectual property without compensation.

Apple bought modem chips from Qualcomm for years, but the relationship soured two years ago as Apple accused Qualcomm of charging exorbitant prices.

The companies on Tuesday had started proceedings in a trial, which saw both sides asking for billions of dollars in damages.

Qualcomm in recent months has indicated that it would be willing to work with Apple to unroll an iPhone with 5G capabilities, which Apple has reportedly struggled to launch.