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Imagination Tech starts dispute process with Apple

LONDON May 4 Imagination Technologies said it had started a "dispute resolution procedure" with Apple , its biggest customer, after failing to resolve a standoff over licensing between the two companies.

Imagination said in April that Apple had notified the British firm it was developing its own graphics chips and would no longer use Imagination's processing designs in 15 months to two years time. The news sent shares in the British firm down 70 percent on the day.

It said on Thursday it had commenced the dispute resolution procedure under the licence agreement with a view to reaching an agreement through a more structured process. It also said it planned to sell two businesses, MIPS and Ensigma.

(Reporting by Kate Holton, editing by Paul Sandle)

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