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  • Ericsson and Apple Sign a Fresh Patent Licensing Agreement, Shares Rise

    The Swedish telecom firm, Ericsson, recently announced a fresh patent licensing agreement with Apple, resolving a year-long legal fight between the two companies. The exact terms of the deal werenít identified but the companyís revenue from intellectual property in 2015, including the new Apple deal, is expected to reach between 13 to 14 billion crowns or $1.52 billion to $1.64 billion. This is an increase from 9.9 billion crowns which were mentioned last year.

    ABG Sundal Collier, an investment bank, estimated that Apple is being charged 0.5% of the revenue from iPhones and iPads. Since the company pulled in $32.2 billion in revenue from iPhones during the September quarter alone, this could translate into hundreds of millions of dollars per year. Ericssonís chief intellectual property officer, Kasim Alfalahi, stated that the licenses covered 2G, 3G and LTE cellular connections. He commented stating the following:

    It means we can continue to work with Apple in areas such as 5G radio network and optimization of the network.
    For those of you who didnít know, Apple initially sued Ericsson in January, claiming excessive royalties on some of Ericssonís LTE technology. The situation ended up escalating rather quickly with Ericsson turning around and bombarding Apple with lawsuits and US International Trade Commission complaints. By May of 2015, Ericsson even went as far as opening several European lawsuits as well.

    Though the outcome isnít what Apple was looking for, it should be helpful that this is one less legal case to be involved in.

    Source: Reuters
    This article was originally published in forum thread: Ericsson and Apple Sign a Fresh Patent Licensing Agreement, Shares Rise started by Akshay Masand View original post
    Comments 1 Comment
    1. rolandgabor's Avatar
      rolandgabor -
      Finally someone showed some muscle. Good for them