Imagination Technologies Lashes Out at Apple in Annual Report

Imagination Technologies Lashes Out at Apple in Annual Report

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Imagination Technologies Group has once again lashed out at Apple following notice that the company would no longer be using its IP in future GPUs.

Imagination doesn't believe that Apple could make a GPU without its technology and is accusing the company of unacceptable business practices. Here's an excerpt from the Imagination's annual report released today:

Apple informed us at the end of March that it will no longer use the Group's intellectual property in its new products in 15 months to two years' time, and as such Imagination will not be eligible for royalty payments under the current license and royalty agreement.

Apple has used Imagination's technology and intellectual property for many years. It has formed the basis of Graphics Processor Units ("GPUs") in Apple's phones, tablets, iPods, TVs and watches. Apple has asserted that 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 has not presented any evidence to substantiate its assertion that it will no longer require our technology, without violating our patents, intellectual property and confidential information. This evidence has been requested of Apple, but they have declined to provide it.

We believe that it would be extremely challenging to design a brand new GPU architecture from basics without infringing our intellectual property rights, accordingly we have not accepted Apple's assertions. We initiated the dispute resolution procedure under the license agreement with a view to reaching an agreement through a more structured process.

To be clear Apple made an unsubstantiated claim, which obliged us to inform the markets, leading to a significant decrease in our share price. The claim has led us to invoke a contractual dispute resolution procedure and has created significant uncertainty with respect to our business, including our employees. We do not believe this to be acceptable business practice nor in line with Apple's own ethics statements regarding suppliers.

At the time of writing this report, we remain in dispute. Imagination has reserved all its rights in respect of Apple's unauthorised use of Imagination's confidential information and Imagination's intellectual property rights.

The loss of Apple as a customer has caused a massive drop in Imagination's stock price. The company has also put itself up for sale.

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Imagination Technologies Lashes Out at Apple in Annual Report

D4xM4Nx - July 5, 2017 at 6:49am
Imagination is terrified to deal with the truth: Apple has something in the works by itself and has no problems ditching their IP with the gain of cutting on costs. Apple has a power position and depending heavily on them should mean for these companies know very well what they wrought accepting their terms and move on, switch to a profitable, new area.
Everybody wonders - July 5, 2017 at 12:05pm
Or as stated, 1: make a media statement 2: share price drops 3: when it bottoms out, buy the company...
lemon4611 - July 5, 2017 at 1:18am
Apple is not exactly a squeaky clean company. It plays dirty with it's customers so to imagine them playing dirty with a supplier is not a stretch at all. Cook has shown more attention to being a political instigator than to producing a working product or OS since he took over from Jobs. Apple will get busted on this one and the bubble will burst. yeah yeah MicroSoft was the teflon Don of the computer world once so it won't be a surprise when Apple aka (Crook and Ives) hits the skids and it's stock will be worth less than it was back in the pre iMac / iPod days. The iPhone 10 years ago was a world changing device, now it's just an expensive device in a market filled with some very legitimate competitors. Apple knew it was going to kill Imagination Technologies Group's stock price and harm that companies employee's but it went ahead because that is the real Apple Tim Cook has developed. This is where the tables get turned and Apple finally feels the wrath of that evil betch known as Karma.
Me - July 6, 2017 at 1:04pm
SJW much?
Me - July 6, 2017 at 1:05pm
Or just a regular snowflake, lol
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