Samsung and Qualcomm resolve dispute and form a new alliance

Samsung and Qualcomm have amended a patent cross-licensing agreement which may help the latter fend off a takeover bid from Broadcom, while at the same time support Qualcomm's appeal against the Korean Fair Trade Commission's penalty.

As part of the agreement, the two companies will be working together on Qualcomm processors to aid in the transition to 5G. Neither company has disclosed the terms of the deal, however, in the latest earnings call, Alex Rogers, head of Qualcomm's licensing division, told the investors that Samsung would still be paying royalties on handset sales.

Meanwhile, Reuters has suggested that by forming this agreement, Qualcomm may be willing to settle trade disputes outside of the courts, and this may be especially pertinent in the ongoing litigation between Apple and Qualcomm. In the same earnings call, Chief Executive Officer Steve Mollenkopf said he is open to resolving the case with Apple such that both companies can go back to collaborating with each other.

Qualcomm's practices have recently landed them in a considerable amount legal quagmire. This agreement may be the chip giant's first step towards resolving the litigation so that the company can put more focus on improving the many components present in their SoCs. How the ongoing case with Apple turns out remains to be seen. Hopefully, it will not last as long as the case between Samsung and Apple.

Source: Financial Times via Reuters

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