On Monday, Apple and Ericsson announced a global patent license agreement and an end to their legal battles.
The deal between Swedish telecom giant Ericsson and US tech giant Apple puts an end to a year-long patent dispute between the companies. “The agreement includes a cross license that covers patents relating to both companies' standard-essential patents,” explained Ericsson in an official press release on the matter, “and grants certain other patent rights. In addition, the agreement includes releases that resolve all pending patent-infringement litigation between the companies.” Under the terms of this seven-year deal, Apple will pay on-going royalties in addition to an unspecified initial payment. Ericsson did not reveal how much Apple will be paying, but investment bank ABG Sundal Collier claims that Apple would be charged approximately 0.5 percent of its revenue on iPads and iPhones with this deal. Terms of the deal have not been revealed at this time.
In addition to the patent agreements, Ericsson and Apple will start working together across several technology areas. According to Ericsson’s statement, the companies will collaborate on “development of the next generation 5G cellular standards, the optimization of existing wireless networks for the benefit of operators and users worldwide, and video traffic optimization.” Apple has not commented on this deal at this time, though a company spokesperson referred Reuters to a previous statement on the matter. In this earlier statement, Apple said that it “deep respect for intellectual property and was willing to pay a fair price for rights to patents.”
The deal between Swedish telecom giant Ericsson and US tech giant Apple puts an end to a year-long patent dispute between the companies. “The agreement includes a cross license that covers patents relating to both companies' standard-essential patents,” explained Ericsson in an official press release on the matter, “and grants certain other patent rights. In addition, the agreement includes releases that resolve all pending patent-infringement litigation between the companies.” Under the terms of this seven-year deal, Apple will pay on-going royalties in addition to an unspecified initial payment. Ericsson did not reveal how much Apple will be paying, but investment bank ABG Sundal Collier claims that Apple would be charged approximately 0.5 percent of its revenue on iPads and iPhones with this deal. Terms of the deal have not been revealed at this time.
In addition to the patent agreements, Ericsson and Apple will start working together across several technology areas. According to Ericsson’s statement, the companies will collaborate on “development of the next generation 5G cellular standards, the optimization of existing wireless networks for the benefit of operators and users worldwide, and video traffic optimization.” Apple has not commented on this deal at this time, though a company spokesperson referred Reuters to a previous statement on the matter. In this earlier statement, Apple said that it “deep respect for intellectual property and was willing to pay a fair price for rights to patents.”
Tags
News