Qualcomm and Apple have renewed their global patent licensing agreement, extending a deal that was previously set to expire in 2027. Here are the details.

To say that Apple and Qualcomm have had a rocky relationship would be an understatement.

Once major business partners, the companies became embroiled in a sprawling legal battle in 2017 over Qualcomm’s patent licensing practices and royalty payments.

In a nutshell, Apple sued Qualcomm in U.S. federal court in early 2017, challenging Qualcomm’s patent-licensing practices and seeking nearly $1 billion in royalty rebates that Apple said Qualcomm had improperly withheld.

The lawsuit came just three days after the FTC also sued Qualcomm, alleging anticompetitive licensing practices. The complaint specifically mentioned Qualcomm’s dealings with Apple, alleging that the company offered billions of dollars in conditional rebates in exchange for Apple exclusively using Qualcomm modem chips in new iPhones and iPads.

A few months later, Qualcomm countersued Apple, accusing the company of breaching agreements and interfering with its relationships with iPhone and iPad manufacturers.

The dispute ended in 2019, when Apple and Qualcomm agreed to drop all litigation against each other worldwide.

As part of the settlement, Apple made an undisclosed payment to Qualcomm that, among other things, resolved a dispute over royalty payments Apple had withheld during the legal battle. The companies also entered into a six-year global patent licensing agreement and a separate multiyear chipset supply deal.

That licensing agreement took effect on April 1, 2019, and included an option for Apple to extend it for another two years.

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