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Imagination Technologies files dispute process with Apple

By Cookie Monster - on 5 May 2017, 1:00am

Imagination Technologies files dispute process with Apple

Apple's legal team should be working overtime in the coming weeks as another key supplier, Imagination Technologies started a "dispute resolution procedure" with the iPhone maker after talks between the two companies failed. 

Imagination told Reuters that it was unable to reach an agreement with Apple on potential alternative commercial arrangements for the current license and royalty agreement.

Reuters - "Imagination has therefore commenced the dispute resolution procedure under the license agreement with a view to reaching an agreement through a more structured process," it said.

The dispute started last month when Apple notified Imagination that it will no longer use the latter's intellectual property (IP) in the next 15 to 24 months as it is working on a separate, independent design for a GPU. Imagination strongly believes that it is extremely challenging for Apple to design its own GPU architecture without infringing on its IP.

The loss of a big client like Apple has sent Imagination's shares down by almost 70%. To strengthen its balance sheet, Imagination announced that it would be selling two of its businesses, MIPS and Ensigma. The MIPS business is responsible for designing microprocessors for Wi-Fi routers, mobile phones and tablets while Ensigma offers IP licensing for connectivity in low power devices.

Source: Reuters, Financial Times via 9to5Mac

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