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Apple to stop using Imagination's IP in new products

03 April 2017 10:49

Communications tech company Imagination Technologies was notified by Apple, its largest customer, that Apple will no longer use its intellectual property in its new products in 15 months to two years time.

This would mean that the firm will not be eligible for royalty payments under the current license and royalty agreement.

For many years, Apple have used Imagination's technology and intellectual property. It formed the basis of graphics processor units (GPUs) in Apple's phones, tablets, iPods, TVs and watches.

Apple asserted it has been working on a separate, independent graphics design in order to control its products and will be reducing its future reliance on Imagination's technology.

Apple did not present any evidence to substantiate its assertion that it will no longer require Imagination's technology, without violating Imagination's patents, intellectual property and confidential information.

This evidence was requested by Imagination but Apple declined to provide it.

Imagination said it believes it would be challenging to design a brand new GPU architecture from basics without infringing its intellectual property rights, and did not accept Apple's assertions.

Apple's notification led management to discuss with Apple potential alternative commercial arrangements for the current license and royalty agreement.

Imagination reserved all rights in respect of Apple's unauthorised use of Imagination's confidential information and its intellectual property rights.

At 10:49am: (LON:IMG) Imagination Technologies Group PLC share price was -161.87p at 106.38p

Story provided by StockMarketWire.com

Related Company: IMG

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