It’s nearly Christmas: the time of mince pies, good cheer, and, apparently, settling patent disputes with the potential to cost you hundreds of millions of dollars each year.
With that in mind, Apple has agreed a patent licensing deal with Swedish telecom company Ericsson, ending a dispute in which Ericsson was accused by Apple of engaging in, “abusive licensing practices.”
There were no definite terms released to the public, but investment bank ABG Sundal Collier thinks that Apple will pay around 0.5% of its revenue on iPads and iPhones to the telecom giant.
Ericsson estimated that its intellectual property-related earnings will hit 13 to 14 billion crowns ($1.52-$1.64 billion) in 2015 — including the money from Apple. This is up from “just” 9.9 billion crowns last year.
Ericsson Chief Intellectual Property Officer Kasim Alfalahi says the agreement with Apple is a broad one, and not only covers earlier generation 2G and 3G technology, but newer 4G-LTE tech, and future areas of expansion such as 5G radio networks.
The Swedish company’s share prices rose 7 percent after the agreement was made public.