Ericsson, Apple Settle Patent Dispute

23 Dec 2015 | Author: | No comments yet »

Apple Signs Peace Deal With Ericsson.

The specific terms of the contract are confidential but news of the deal sent the Swedish network-equipment vendor’s shares 7% higher in early trading Monday. Stockholm: Swedish telecoms giant Ericsson has reached a global licensing agreement with Apple that settles several earlier patent disputes between the two companies, Ericsson announced on Monday.Swedish mobile telecom gear maker Ericsson eric announced it had signed a patent license deal with Apple Inc aapl , ending a year-long dispute and sending its shares up 7% on Monday.

The dispute between the world’s largest maker of wireless network technology and Apple highlights the complex corporate relationships in the telecom sector, where standardization of technologies and increased penetration of smartphones rely on sharing research and development globally. Ericsson estimated however that its overall revenues from intellectual property rights in 2015 would hit 13-14 billion Swedish crowns ($1.52-$1.64-billion), including positive effects from the settlement with Apple, up from 9.9 billion in 2014. Last January, Ericsson filed a complaint against Apple over mobile technology license payments, responding to a lawsuit from the iPhone maker earlier that month.

Investment bank ABG Sundal Collier said in a note to clients it believed the deal meant Apple would be charged around 0.5% of its revenue on iPads and iPhones by Ericsson. While Ericsson no longer makes mobile phones, it remains a leading manufacturer of equipment for mobile networks, and has more than 35,000 technology patents and 100 patent-licensing agreements worldwide. Ericsson Chief Intellectual Property Officer Kasim Alfalahi said the agreement was broad, covering the latest 4G-LTE generation of mobile technology, as well as the earlier 2G and 3G technologies. “It means we can continue to work with Apple in areas such as 5G radio network and optimization of the network,” Alfalahi told Reuters, but declined to provide further financial details. Apple filed a legal complaint in January against Ericsson, claiming the patents were not up to industry standards and that the Swedish group had asked for excessive royalties for them in its licensing renewal offer.

According to the Swedish company, Apple has been violating 41 patents over the past few years with its iPhone and iPad, in particular patents related to GSM, UMTS and LTE technologies. It’s the second settlement for Apple this month–albeit a deal with Samsung Electronics Co. ssnlf three weeks ago went the other way, with the Korean giant paying $548 million to end a four-year dispute over patent infringement.

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