Imagination Technologies Group plc (LSE: IMG, Imagination, the Group) a leading multimedia, processor and communications technology company, has been notified by Apple Inc. (Apple), its largest customer, that Apple is of a view that it will no longer use the Groups intellectual property in its new products in 15 months to two years time, and as such will not be eligible for royalty payments under the current license and royalty agreement.
Apple has used Imaginations technology and intellectual property for many years. It has formed the basis of Graphics Processor Units (GPUs) in Apples 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 Imaginations technology.
Apple has not presented any evidence to substantiate its assertion that it will no longer require Imaginations technology, without violating Imaginations patents, intellectual property and confidential information. This evidence has been requested by Imagination but Apple has declined to provide it.
Further, Imagination believes that it would be extremely challenging to design a brand new GPU architecture from basics without infringing its intellectual property rights, accordingly Imagination does not accept Apples assertions.
Apples notification has led Imagination to discuss with Apple potential alternative commercial arrangements for the current license and royalty agreement.
Imagination has reserved all its rights in respect of Apples unauthorised use of Imaginations confidential information and Imaginations intellectual property rights.
A further announcement will be made in due course.
This announcement contains inside information.EnquiriesImagination Technologies Group plcTel: 01923 260 511Andrew Heath, Chief Executive Officer Guy Millward, Chief Financial Officer Instinctif PartnersTel: 020 7457 2020Adrian Duffield/Kay Larsen/Chantal Woolcock
Notes to editors
Apple license fees and royalties, as disclosed in Imaginations Annual Report, represented revenue of 60.7 million for the year ended 30 April 2016 and are expected to be approximately 65 million for the year ending 30 April 2017. Imagination has minimal direct costs associated with this revenue stream.
Imagination is a global technology leader whose products touch the lives of billions of people across the globe. The companys broad range of silicon IP (intellectual property) includes the key processing blocks needed to create the SoCs (Systems on Chips) that power all mobile, consumer and embedded electronics. Its unique multimedia, processor and connectivity technologies enable its customers to get to market quickly with complete and highly differentiated SoC platforms. Imaginations licensees include many of the worlds leading semiconductor manufacturers, network operators and OEMs/ODMs who are creating some of the worlds most iconic products. See:www.imgtec.com.