Apple And Ericsson Patent Lawsuit Settled; Details Released As Shares Rise!
Consumers and mobile-tech connoisseurs alike recently found out that the patent lawsuit between Apple and Ericsson has finally ended, while the latter's shares rises after the two signed a deal, according to sources.
The California-based technology company Apple has ended its lawsuit against Swedish telecoms firm Ericsson after the two companies signed a global licensing agreement that covered wireless patents (covering its 2G, 3G and 4G wireless standards) being used in the former's iPhone line, as stated by ZDNet.
Both companies have been in a grid-lock between European and US courts after they initially countersued each other to settle a controversy on how royalties should be estimated and measured, wherein the former ceased paying royalties to Ericsson after an agreement expired, according to Reuters.
"We've always been willing to pay a fair price to secure the rights to standards essential patents covering technology in our products," Apple Spokeswoman Kristin Huguet stated, courtesy of the source.
"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," she added.
As the lawsuit between Apple and Ericsson finally culminated, the latter stated that under the signed agreement, the company will be paid an undisclosed amount by Apple along with an ongoing royalties for over seven years, as reported by The Wall Street Journal.
"A settlement outside of a court was definitely our preferred way," Ericsson's Chief Intellectual Property Officer Kasim Alfalahi stated, courtesy of the source.
"We invest about $3.51 billion a year in research and development and license our patents to the whole industry. We expect fair returns to be able to continue to invest," he added.
Having signed a global patent agreement that ended the Apple-Ericsson court case, the two will be expected to work together in developing the next generation of mobile data communication, the 5G technology, according to the International Business Times.
As such, UBS analysts estimated that after the lawsuit with Apple, the recently-signed global patent agreement would increase Ericsson's operating profit by 13 percent in 2015 and 10 percent in 2016, as reports also state that the company's shares has recently risen to 5.6 percent (the biggest one the company has gained as of date), according to Reuters.
