Apple has extended its patent licensing agreement with Qualcomm until March 2027. It was previously set to expire in 2025. Both companies have previously extended the deal for the supply of 5G modems until at least 2026.
During the discussion of his quarterly figures, Qualcomm’s CEO announced that Apple has decided to extend the patent licensing deal for two years. As part of the agreement, Apple must pay royalties to Qualcomm for the use of the latter’s patents. The terms of the extension, such as the amount involved, are not mentioned.
This agreement was concluded in 2019 after a long series of lawsuits between the two parties. The iPhone maker felt that Qualcomm was asking too much money for the licenses and therefore stopped paying in 2017. The company simultaneously started a lawsuit against the chipmaker, after which the latter itself filed suit against Apple. In 2019, the companies finally reached a six-year agreement, worth around $4.5 billion. The option to extend the deal for two years was already mentioned.
On paper, this deal is separate from the agreement that the two companies have made regarding the supply of 5G modem chips for iPhones. This was already extended last year until 2026, but the patent agreement remained unchanged. However, without the latter deal, Apple will also not be allowed to use Qualcomm modem chips for its iPhones. Apple is working on its own 5G modem, although development is reportedly less successful than the iPhone manufacturer hoped.
During the same discussion, Qualcomm announced that it has extended its Snapdragon agreement with Samsung for “several years.” This deal expires in 2023. This means that Samsung’s Galaxy phones can continue to be equipped with Snapdragon chips for at least the next few years, although it is not stated exactly how long the agreement will last.