Ericsson and Apple reach settlement deal on patents

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By Larry Banks

Swedish mobile equipment maker Ericsson today announced it had reached a patent licensing deal with Apple, which draws to a close a year-long dispute, and which sent the company’s shares up by 7 percent on Monday.

Ericsson has not revealed how much the company will earn from the deal, but the estimated revenue from intellectual property rights this year reach up to 14 billion Crowns ($1.64 billion), including the effects from the settlement with Apple. That’s an increase from 9.9 billion Crowns in 2014.

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After the deal, investment bank ABG Sundal Collier said it believed the deal means Apple will be charged around 0.5 percent of its revenue on iPads and iPhones by Ericsson.

The company’s Chief Intellectual Property Officer, Kasim Alfalahi said the deal was broad, and covers the latest 4G LTE mobile technology as well as earlier 2G and 3G technologies.

“It means we can continue to work with Apple in areas such as 5G radio network and optimization of the network”, Alfalahi told news agency Reuters.

Ericsson had filed complaints against Apple over mobile technology licensing in January, in response to a lawsuit that Apple filed the same month.

Meanwhile analysts say that if the dispute went Ericsson way, the US Firm would have to pay the Swedish company between 2 and 6 billion Swedish Crowns each year, based on handset sales and royalty payments for each phone.

SOURCE: Reuters.

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