Imagination Technologies has kicked off a dispute resolution process with tech giant Apple over issues relating to intellectual property.
Shares in the Hertfordshire-based firm were up one per cent at the open.
Chip maker Imagination's share price crashed last month when Apple announced it would no longer require the use of the British company's designs within the next two years.
At the time, Apple said it was "of a view that it will no longer use (Imagination’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.
Imagination said in April that Apple had not presented "any evidence to substantiate its assertion that it will no longer require Imagination’s technology, without violating Imagination’s patents, intellectual property and confidential information".
Imagination said today it has been "unable to make satisfactory progress with Apple to date regarding alternative commercial arrangements for the current licence and royalty agreement".
"Imagination has therefore commenced the dispute resolution procedure under the licence agreement with a view to reaching an agreement through a more structured process," the tech firm said.
"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 company also said it had "finished the financial year strongly" with results expected to be in line with the board’s expectation.