Long-Running litigation between Apple and Ericsson over Cellular Patents is over
This occurs as reports claim that Apple is developing its own 5G modems.
In October 2021, Ericsson filed the initial lawsuit, alleging that Apple was unfairly attempting to reduce the royalty fees. The Swedish corporation was then charged with utilizing "strong-arm techniques" to renew patents, according to the complaint the iPhone maker filed in December 2021.
Including the consequences of the settlement and ongoing IPR business with all other licensees, Ericsson predicted fourth-quarter IPR licensing revenues of 5.5 billion–5.0 billion Swedish crowns ($530.3 million–$578.5 million) on Friday.
Apple has won a new wireless patents conflict. A licensing agreement between the iPhone maker and Ericsson resolves all legal issues between the two businesses, including civil cases and a US International Trade Commission complaint. The multi-year agreement involves cross-licensing for "standard-essential" cellular technology as well as other patent rights, however the specific terms are still unknown.
The battles between the major tech companies over cell technology are not new. In order to obtain better LTE patent conditions, Apple sued Ericsson in 2015. In response, Ericsson filed its own lawsuit, claiming that the iPhone and iPad violated its patents.
The two came to a seven-year peace accord. But the hostility resumed when the time for that arrangement's renewal drew nigh. In October 2021, Ericsson filed a lawsuit over Apple's attempts to reduce the royalty payments. In response, Apple filed a countersuit in December of the same year, alleging Ericsson had unfairly applied pressure on the renewal. This January, Ericsson filed yet another case about 5G licenses.
Apple has been contacted for comment. The agreement, according to Ericsson's IP chief Christina Peterson, will allow the two businesses to "concentrate on bringing the best technology" to the world. One of the biggest wireless patent owners in the world, Ericsson, claimed that the Apple deal would help increase its licensing revenue for the fourth quarter to at least $532 million.
The timing could be important. Apple apparently purchased the majority of Intel's modem division and even started making overt hiring moves in Qualcomm's neighbourhood in order to create 5G iPhone modems to replace Qualcomm's chips. By lowering the likelihood of legal disputes over whatever Apple develops, the Ericsson ceasefire may help clear the way for such modems. Time may also be running out; there have been reports that Apple may start using its own components as early as 2023.
