Apple is the largest customer of Imagination Technologies Group Plc (LSE: IMG, “Imagination,” the Group), the leading multimedia, processor, and communications technology company that provides graphics for the iPhone. The company revealed that within the span of 15 months to 2 years, Apple would not use the Group’s intellectual property in the upcoming products. Also, the company is not liable for royalty payments under the current license and royalty agreement.
For finite times Apple made use of Imagination’s technology and intellectual property. It has formed the basis of Graphics Processor Units (GPUs) in Apple’s phones, tablets, iPods, TVs, and watches. Apple has claimed that it has been working independently on separate graphics designs in order to control its products and will not depend on Imagination’s technology.
No evidence was presented by Apple to claim that it will no longer require Imagination’s technology without breaching Imagination’s patents, intellectual property, and confidential information. Apple has denied handing any evidence when requested by Imagination.
According to Imagination, it would be very difficult for Apple to start from scratch, i.e., basics for designing new GPU architecture, by excluding its intellectual property rights. Imagination has now taken a step to discuss potential alternative commercial arrangements for the current license and royalty agreement with Apple.
Imagination has reserved all its rights in respect of Apple’s unauthorized use of Imagination’s confidential information and Imagination’s property rights.
