Apple recently filed a suit against Sony Ericsson for charging royalty rates that were too high on certain wireless Long Term Evolution (LTE) technology. The Cupertino California company argued that Ericsson’s patents aren’t essential to overarching industry standards. It was revealed that Ericsson is demanding a percentage of the total price of every cellular-connected iPhone or iPad sold as part of its royalty rate.

The complaint mentioned the following according to Bloomberg:

Ericsson seeks to exploit its patents to take the value of these cutting-edge Apple innovations, which resulted from years of hard work by Apple engineers and designers and billions of dollars of Apple research and development — and which have nothing to do with Ericsson's patents.
Apple continues to argue that royalties should be based on the value of the component using the patented technology such as baseband chips or application processors which would come out to a fraction of what Ericsson is asking for. Aside from just winning the suit, Apple also requested the court instate a reasonable royalty rate if the company is found to infringe Ericsson’s intellectual property.

For those of you who didn’t know, Ericsson seems to be increasingly aggressive when it comes to milking its royalties from major industry players such as Samsung and Xiaomi, many of which tend to use the intellectual property across several devices. Unsurprisingly, many of the patents that are being leveraged are for wireless communications technology. Apple spokeswoman, Kristin Huguet, had the following to say regarding the matter:

We've always been willing to pay a fair price to secure the rights to standards essential patents covering technology in our products. Unfortunately, we have not been able to agree with Ericsson on a fair rate for their patents so, as a last resort, we are asking the courts for help.
As of right now Apple utilizes several standard-essential patents that are owned by Ericsson. The deal was previously inked in 2008 though and could be expiring soon. One thing to note is that the complaint didn’t reveal how much Ericsson was asking for but the number is likely substantial considering Apple’s market share.
We’ll have to wait to see what happens next as Apple finds itself in yet another court case.

Source: Bloomberg, Reuters