Imagination Tech Starts ‘Dispute Resolution Procedure’ with Apple Over Current License and Royalty Agreement

Imagination Technologies

Imagination Tech, Apple’s long time GPU supplier for A-series chipsets, has started a “dispute resolution procedure” after both the companies failed to resolve a standoff over their licensing terms.

Imagination Tech had revealed back in April itself that Apple plans on ditching its GPUs within the next 1.5-2 years from its chipsets. Instead, the Cupertino company plans on using its own in-house developed GPUs. Imagination Tech raised concerns about Apple developing its own GPUs from scratch without infringing on any of its patents and intellectual property.

Now, since both companies have been unable to make any progress on their alternative commercial arrangements for their existing license and royalty agreement. Due to this, the company has started a “dispute resolution process” through which it hopes to reach an agreement with Apple.

It said on Thursday it had been unable to make satisfactory progress with Apple on an alternative commercial arrangements for the current license and royalty agreement.

“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.

Imagination Tech shares tanked by over 70 percent when news of Apple ditching its GPUs was revealed in April. The company’s shares have not made any recovery whatsoever since then and the future looks bleak for it as well. The company is planning on selling its embedded processor technology MIPS and mobile connectivity unit Ensigma to keep itself afloat.

[Via Reuters]