Apple and Ericsson agreed – 99mac

After a lengthy patent dispute is now Apple and Ericsson agreed. Apple will pay license fees to the Swedish telecom giant.

In the beginning of the year sued Apple Swedish Ericsson for their license fees for patents concerning LTE technology was too high. Telecoms giant responded by suing Apple back and wanted to get to a sales ban on the iPhone in the US.

The Stockholm-based Ericsson has gone from selling mobile phones to become the world’s largest manufacturer of equipment for building networks for mobile communications. The company also holds a large portfolio of patents.

Now, several months later, the two parties agreed on a new license which runs over the next seven years, according to a press release from Ericsson. Apple will pay to use the patented technology for 2G, 3G and 4G / LTE. How much Apple should pay is not known, but the Reuters news agency has received an appreciation from an investment bank.

The investment bank ABG Sundal Collier says in a mailing to their clients that they believe the deal means that Apple will pay about 0.5 percent of its revenues for the iPad and iPhone to Ericsson.

Apple will make an initial payment to the Swedish company and then pay ongoing royalties. The new agreement also resolves all pending litigation between the two companies.

Ericsson estimates that its revenues for patents and licenses for the full year 2015 will amount to 13-14 billion including transactions with other licensees than Apple.

“We are excited about this new agreement with Apple, which paves the way for both companies to continue to focus on getting new technologies to the global market, and opens up more joint business opportunities in the future, “comments Ericsson’s head of intellectual property rights, Kasim Alfalahi.”