Ericsson Sues Apple Over Patent Infringement -- Update
By Dominic Chopping
STOCKHOLM--Ericsson AB has filed a number of patent-infringement
lawsuits against Apple Inc. for using its technology in products
such as its iPhones without a license.
Fallouts in the telecom industry aren't uncommon, as so much
technology is shared in communication equipment, and these most
recent lawsuits, filed Monday, are the latest in a line of spats
between the companies as they argue over royalty payments.
With the rapid development of all-new technology to power 5G and
the huge costs involved, developers are keen to ensure they recoup
costs via royalties when their technology is used by others.
Apple first licensed Ericsson's patents in 2008 when it released
the first iPhone. When that deal expired, a 2015 complaint by
Ericsson against Apple led to another global cross-license deal
between the companies, but those licenses have now expired after
talks to renew the deal at the end of 2021 failed.
In October, Ericsson sued Apple, seeking a declaration that the
5G licensing rate it offered Apple was fair, reasonable and
non-discriminatory, noting that the rate of between $2.50 and $5.00
for each 5G handset sold was set in 2017 to offer licensees
transparency and predictability.
Apple counter sued in December, claiming the Swedish company was
using "strong-arm tactics" to renew patents.
"Ericsson has filed a number of lawsuits against Apple for
patent infringement in multiple jurisdictions," Ericsson said in an
emailed statement Tuesday. "Since the prior agreement has expired,
and we have been unable to reach agreement on the terms and scope
of a new license, Apple is now using our technology without a
Ericsson spends around $5 billion on research and development
every year and has been granted more than 57,000 patents
world-wide. Its technology is licensed through more than 100
licensing agreements, which currently generate around 7 billion
Swedish kronor ($776.5 million) of annualized revenues.
"We've always been willing to pay a fair price for technology
used in our products," Apple told The Wall Street Journal.
"Ericsson has refused to negotiate fair terms for renewing our
patent licensing agreement, and instead has been suing Apple around
the world to extort excessive royalties."
Apple added that it is now asking the court to help determine a
fair price for the standard essential patents that would apply
"We will continue to defend against their tactics," Apple
Write to Dominic Chopping at email@example.com
(END) Dow Jones Newswires
January 18, 2022 12:57 ET (17:57 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Historical Stock Chart
From Apr 2022 to May 2022
Historical Stock Chart
From May 2021 to May 2022