Ericsson announced it signed a global patent licence agreement with Apple and settled their outstanding lawsuits. As part of the seven-year agreement, Apple will make an initial payment to Ericsson and, thereafter pay ongoing royalties. The specific terms of the contract were not disclosed.
It includes a global cross-license for patented standard-essential technologies and grants certain other patent rights. The settlement ends all ongoing patent-infringement claims between the parties. In addition, the companies will collaborate in multiple technology areas, including the development of the next generation 5G cellular standards, the optimization of existing wireless networks for the benefit of operators and users worldwide, and video traffic optimization.
Including positive effects from the settlement and its ongoing intellectual property business with other licensees, Ericsson estimates its full-year revenues from licensing at SEK 13-14 billion in 2015.
Ericsson filed patent infringement complaints against Apple in February at the International Trade Commission and a court in the US, and later followed with several suits in Europe. This followed the expiry of Apple's licence on Ericsson's mobile technology in January, and Apple's rejection of the licence terms offered by Ericsson under a new agreement. Ericsson said that it made several attempts to find a fair solution, but the two were unable to agree terms.
