Apple and Ericsson are ending their patent war, which should boost innovation for the two giants.
Apple has managed to put an end to another big wireless patent battle. The iPhone maker and the iPhone have signed an agreement ending a long-running legal dispute, including civil lawsuits and a complaint from the US International Trade Commission. Although the exact terms were not disclosed, the multi-year agreement includes co-licensing of key cellular technologies, as well as other rights to use patents.
Apple and Ericsson announce truce in patent war
Tech giants have a long history of cellular technology. Apple sued Ericsson in 2015 for better terms on the LT patents, but Ericsson responded with another lawsuit, claiming the iPhone and iPad infringe on some of its patented ideas. They then signed peace for seven years. But as that deal came to an end, hostility returned to the fore. Ericsson sued Apple in October 2021 after the Cupertino company tried to cut fees, Apple counterattacked in December of this year, claiming Ericsson used unfair tactics for this renewal. Ericsson filed a complaint again in January, this time over 5G licenses.
What should drive innovation for the two giants
In announcing the deal, Ericsson’s director of licensing Christina Petersson said the ceasefire would allow the two companies to “focus on building the best technology”for the world. Ericsson has one of the largest wireless patent portfolios in the world. The deal with Apple will help boost its latest quarter licensing revenue to at least $532 million, the company said.
Time is of the essence. Apple is still developing its own 5G modems for the iPhone to replace Qualcomm’s chips, after buying much of Intel’s modem business and poaching a number of Qualcomm executives. This truce with Ericsson could pave the way for these modems, Apple said, reducing the risk of lawsuits once these new components are developed. And time may run out. Rumors have been circulating for some time that Apple could use these custom modems as early as 2023.