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12 December 2022PatentsStaff Writer

Apple and Ericsson call a truce over SEP royalties

Fierce litigation ends with multi-million dollar deal | Agreement includes promise to collaborate in “standards development”.

Apple and Ericsson have struck a deal, ending a global patent feud between the pair and establishing a cross-licence for standard-essential technologies.

Swedish telecoms company Ericsson said that the multi-year global patent licence between the parties includes a cross-licence that covers patent-protected cellular standard-essential technologies and grants certain other patent rights.

"Furthermore, Ericsson and Apple have mutually agreed to strengthen their technology and business collaboration, including in technology, interoperability and standards development,” said the release.

The settlement ends all ongoing patent litigation between the pair.

Following the expiration of patent licensing agreements, Apple refused to accept a renewed licensing agreement, claiming that Ericsson had violated fair, reasonable and non-discriminatory (FRAND) terms.

Ericsson bought legal action against Apple at the US District Court for the Western District of Texas in November last year, asking the court to order that its terms were FRAND.

In response, Apple filed its own countersuit in December, claiming that Ericsson had used “strong-arm tactics” to impede Apple ahead of negotiations.

Soon after, in January this year, Ericsson escalated the dispute. The telecoms company filed two lawsuits against Apple in the US District Court for the Western District of Texas and three simultaneous complaints for patent infringement with the US International Trade Commission.

The patents-in-dispute included 5G standard-essential patents used in Apple iPhones, iPads and Apple Watches.

Christina Petersson, chief IP officer at Ericsson, said: “We are pleased to settle the litigations with Apple with this agreement, which is of strategic importance to our 5G licensing programme. This will allow both companies to continue to focus on bringing the best technology to the global market.”

Additionally, Ericsson said that its IP rights licensing revenues continue to be affected by several factors, including expired patent licence agreements pending renewal, the technology shift from 4G to 5G, and possible currency effects and geopolitical impact going forward.

Ericsson forecast fourth-quarter IP rights licensing revenues of SEK5.5-6 billion ($532.8 million-581.2 million), including the effects of the settlement and ongoing IP rights business with all other licensees.

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