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Ericsson, Apple in global patent pact, settle litigation
Apple Inc. has announced that it has reached an agreement with Swedish mobile telecom gear maker Ericcson over patents that had been under dispute. As part of the agreement, Apple will make an initial payment to Ericsson, and then pay ongoing royalties. Specific terms of the contract were not revealed. This time, it returned with seven lawsuits again for illegal patent usage and involved the U.S. International Trade Commission in the formulation of two more cases on Apple. Basically Ericsson claimed that Apple had infringed upon their patent, and Apple said that they didn’t. The agreement includes a cross license that would cover patents owned by both the company including the GSM, LTE and UMTS standards which are used in mobile technology. Apple originally filed suit against Ericsson in January 2015, arguing that it was demanding excessive royalties for patents not essential to LTE standards. This includes, developing next generation cellular standards of 5G technology, optimization of video traffic, and enhancing and optimizing existing wireless technologies and networks to benefit operators and users across the globe. I am not saying Ericsson doesn’t deserve to profit from Apple’s arguable use of its patented technology, but the deal is yet another another example of a company seemingly suckling at Apple’s massive teat. The company sold its mobile-phone business to Sony Corp.in February 2012, five years after Apple introduced the iPhone, which is now its largest revenue source.
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Even though no confidential figures have been shared openly, Ericsson has revealed the estimate revenue it earned this year from intellectual property rights, which is quoted to be SEK 13-14 billion ($1.52-$1.64 billion).
Kasim Alfalahi, chief intellectual property officer at Ericsson, explained that the deal is good news for both companies and the wider market.
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No one at California-based Apple was immediately available for comment. Earlier this month, the Korean company finally agreed to pay 8 million (£370 million) to Apple, even as it calls that damage figure “grossly exaggerated” and has appealed to the US Supreme Court.