Imagination Technologies recently announced that Apple has replaced the British chipmaker’s contract for intellectual property access in exchange for licensing fees.
The UK firm mentioned in a post on its website that the renewal will provide Apple a wider range of intellectual property. This marks a change of relationship between the two- in 2017, Apple mentioned that it will stop using Imagination Technologies’ graphics for iOS.
Imagination’s shares fell by as much as 60% when the news came out. Moreover, the company criticized Apple publicly and said Apple would be hard-pressed not to violate its IP, confidential information and patents.
After a dispute involving Imagination’s claim of unauthorized IP use and a lower royalty rate invoked by Apple, Imagination lost about 70% of its value. After a successful return to profitability and restructure, the company was sold to Canyon Bridge, an equity firm in November of 2017.
