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Apple And Ericsson Agree To Stop Squabbling Over Patents – Apple to Pay Out Royalties


Apple has just about come to a consensus over patents with Samsung, but long time patent feud with Ericsson has taken a fresh start.

The latter, which is a Swedish telecom giant actually owns a lot of patents of network related products.

These products are used by phones to be able to connect to the internet wirelessly through GSM, the 3G standard UMTS and LTE, which is generally used by phones to connect to the 4G networks.

Ericsson has agreements with most other smartphone manufacturers in the world, because it holds the key to our smartphones becoming smarter and keeping us linked together.

Apparently, due to some disputes, this contract was not renews by Apple at the beginning of the year.

Yet, the Cupertino manufacturer continued to use these products without the consent of the manufacturer and led to a courtroom legal brawl.

And that is where all the confusion started. The court case was a series of blame-games being played one after the other, Apple blaming Ericsson for placing wrong charges for using patents illegally that was actually not being used.

Ericsson retorted by saying that payments for using these patents were still due from Apple. The whole issue took place in front of a baffled jury at the U.S. District Court for the Eastern District of Texas and no decision was reached.

Round two saw Ericsson return to Texas with full force and seven lawsuits in its bag for Apple, combined with two extra cases for with the U.S.

International Trade Commission, this time claiming that since the company had illegally used the patents, iPhone and iPad sales should be blocked. Naturally, this was Apple’s death knell. Settlement followed soon.

As of now, Apple has been smart enough to reach an agreement with Ericsson to pay all the dues that the Swedish giant has demanded. We say this is smart because the company has, just like Apple, been involved in previous disputes with Samsung as well and Apple did not want to take a chance.

In return, Ericsson has pledged to withdraw charges and a global cross-license agreement for patented standards-essential technologies has been reached.

The two will not be haggling over patents anymore and courtrooms across Texas, California, the U.K., Germany and the Netherlands would be able to see peace from both the ends.

The truce is estimated to cost Apple a sum of 13 billion and 14 billion Swedish krona (US$1.64 billion).