Apple, Ericsson kiss and make up while signing a new licensing deal
Apple and Ericsson agree to end a legal war over royalty payments related to 5G wireless patents used with iPhone
Today’s deal means that Apple and Ericsson shook hands ending a legal fight over royalty payments for the use of 5G wireless patents in the iPhone. Ericsson said that the settlement includes the granting of a global patent license to Apple and global cross-licenses for standard-essential cellular technology patents. Standard-essential patents are required in order for a licensee to meet certain industry standards and as a result, they are licensed using royalty terms that are Fair, Reasonable, And Non-Discriminatory (FRAND).
Apple and Ericsson reach agreement on a settlement over 5G patents
In a statement, Ericsson said, “The settlement ends all ongoing patent-related legal disputes between the parties.” The battle between Apple and Ericsson intensified when negotiations on a new seven-year licensing contract covering telecom patents broke down. But that is all in the past after today’s announcement and Ericsson noted that the settlement will “strengthen their technology and business collaboration,” meaning, of course, partnerships between Apple and Ericsson.
Including the effects of the settlement with Apple, Ericsson forecasts fourth-quarter intellectual property rights (IPR) licensing revenues of $530.3 million-$578.5 million. Besides today’s agreement with Apple, that figure includes intellectual property rights with other licensees.
Apple’s plan to use its own 5G modem chips for the iPhone 15 series was stymied by a pair of Qualcomm patents
But this goes to show how important licensing intellectual property is to Apple, even when it plans on producing its own modem chip. Certain key technologies could be covered by patents and licensing them, even when dealing with the complex licensing arrangements that Qualcomm demands (remember, “no license, no chips”) can make or break a big project. Even a company like Apple can be stymied by a patent.