Apple Signs Multi-year License Agreement for Imagination’s Intellectual Property

UK chip designer Imagination Technologies Group has recently revealed that it’s struck a new license agreement with Apple Inc., an American Multinational Technology Company, reviewing a business relationship that had all but ended in recent years.

The company that was sold for 500 million pounds to Chinese buyout firm – Canyon Bridge Capital Partners – in September 2017, said that it formed a new multi-year license agreement in which Apple, the iPhone maker has access to a wide range of Imagination’s Intellectual Property (IP) in exchange for license fees.

In the beginning, Apple tended to use either graphics chips or GPUs (Graphics Processing Units) in its iPhones and iPads that were designed by using IPs of Imagination Technologies. However, later it moved to its own internal chip designs starting with iPhone X in 2017 and the iPad Pro in 2018. Besides these models, the US Company used its own graphics processors in Apple watches as well. Then in 2017, the company told Imagination Technologies that it would stop using their IP in new products within a small period of two years.

When it comes to Imagination Technologies, then a public company, proclaimed the loss of Apple as its biggest customer, its stock plummeted. The British company in 2018 said that there could be ‘material uncertainty’ regarding its future if Apple doesn’t pay royalties on the largest generation of iPhones and iPads.

As per several reports observed till now, it is unclear whether or not Apple has paid the fees to Imagination Technologies. However, the British company argued that it would be very challenging for Apple to design GPUs in a way that enables the American company not to pay royalties to Imagination Technologies.

If we talk about Apple, the iPhone maker often uses a combination of supplier deals and acquisitions for building up its portfolio of patents and designs. For instance, last year also, it acquired Intel Corporation’s modem unit to design cellular chips for its future devices.

Although none of the two companies specified which IP the new agreement covers, it may possibly be related to either Artificial Intelligence (AI) or graphics, two main IPs of Imagination Technologies.

Though the IP covered in the latest agreement between the two companies has not been disclosed so far, yet it is expected that the Imagination’s IPs, which are associated with AI and graphics, could be a key to the future Apple devices. For more visit:

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