Technology giant Apple has settled a wide-ranging legal dispute with chipmaker Qualcomm in an eleventh-hour settlement.
Market snapshot at 7:45am (AEDT):ASX SPI futures -0.3pc at 6,252, ASX 200 (Tuesday’s close) +0.4pc at 6,277AUD: 71.75 US cents, 54.97 British pence, 63.57 euro cents, 80.34 Japanese yen, $NZ1.06US: Dow Jones +0.3pc at 26,453, S&P 500 flat at 2,907, Nasdaq +0.3pc at 8,000Europe: FTSE 100 +0.4pc at 7,470, DAX +0.7pc at 12,101, CAC +0.4pc at 5,529, Euro Stoxx 50 +0.4pc at 3,463Commodities: Brent crude +0.9pc at $US71.80/barrel, spot gold -0.9pc at $US1,276.17/ounce
The settlement includes a payment from Apple to Qualcomm, but the companies did not disclose the amount.
A jury of six men and three women was in the process of hearing opening arguments from Apple’s and Qualcomm’s lawyers, at a federal court in San Diego, 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 into the courtroom.
“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.”
Why did Apple sue Qualcomm?
In January 2017, Apple filed a lawsuit against the chipmaker, accusing it of using illegal patent practices to keep a monopoly on modem chips (which connect phones to mobile data networks).
In particular, Apple claimed that Qualcomm had overcharged for chips and refused to pay some $US1 billion ($1.39 billion) in promised rebates.
Qualcomm had, meanwhile, alleged that Apple was using its technology without paying for it.
Previously, Apple had used only Qualcomm’s modem