Ericsson And Apple Ink Deal To Settle Dispute
Mary Cris BalancioWhile earlier this year Apple has not managed to clear the air between them and Samsung, it is on a happy note to say that it has been successful with Ericsson. Today we learn that both parties have reached a global license agreement ending their almost year-long battle with each other and even inked a seven-year deal.
The world's largest wireless equipment maker said that the deal between them and Apple includes having Apple pay them an undisclosed amount, along with ongoing royalties for the period of more than seven years.
However, they did not disclose the terms involved in the deal, and up to now it is being kept under wraps. Ericsson Chief Intellectual Property Officer Kasim Alfalahi said that the Swedish tech company prefers having a settlement out of court and describes the agreement to have a broad cover. Patents included are those that are needed for making 2G, 3G and 4G cellular technologies.
Meanwhile, a spokesperson for Apple also released a statement saying that the American tech giant is willing to pay if the price is fair when securing rights to the so-called standard essential patents. The dispute between the two companies is almost a normal occurrence in complex relationships between companies relying on shared researches and development.
Alfalahi said they are investing about kr30 billion SEK or about $3.51 billion USD every year on research and development and then license their patents for the whole industry, so they expect fair returns for them to be able to continue their investment.
Earlier this year, Apple filed a suit in a US district court seeking for a ruling to declare that there wasn't any infringement on seven of the Swedish company's patents. This was countered by Ericsson days later when it filed a complaint in another US court where it requested for a ruling in its favor alleging that its proposed licensing terms with Apple was reasonably fair.
Then in February, Apple rejected the offer of the company to have the court determine fair licensing terms. Thereafter, Ericsson filed two complaints regarding 41 patents for technology that were used in iPhones and iPads following Apple's refusal to renew its licensing agreement with its mobile technology on the ground that the Swedish company is asking for too much money.
The two complaints were filed with the International Trade Commission, and then also seven other complaints were filed in the US court for the Easter District of Texas regarding the same concern. In May, Ericsson also filed patent infringement cases against Apple in the UK, Germany, and the Netherlands, seeking for payment of damages and injunction, alleging that the Cupertino company has been using its patents without license.
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