Apple, Ericsson kiss and make up while signing a new licensing deal

By Scott Marlette Last updated Dec 10, 2022

Reuters reports that Apple and Ericsson have agreed to settle a patent battle between the two which started in 2015 when both companies sued each other claiming that they each had patents infringed on by the other. Also part of the legal issues were disagreements that both sides had relating to licensing their 2G, 3G, and 4G technologies.

Both companies buried the hatchet and peace reigned until October 2021 when Ericsson sued Apple over 5G patent licensing. Two months later, Apple sued Ericsson and accused the networking and telecom firm of using “strong-arm tactics” in a bid to renew licensing over patents that had expired.

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.

If you’re wondering how Apple ended up owning some intellectual property related to mobile wireless modems, you might recall that during the summer of 2019 the company purchased Intel’s modem business for $1 billion. The transaction gave Apple ownership of some industry standard-essential patents.

You may have experienced some deja-vu when reading this news because it might have reminded you of the last-minute settlement Apple and Qualcomm signed off on back in 2019 just as opening arguments were wrapping up for a trial between the two tech giants. Apple paid Qualcomm a chunk of cash and both firms agreed to a six-year licensing agreement with a two-year option. And both sides signed a multi-year chipset supply contract.

Apple has been working on its own modem chips which were expected to debut in next year’s iPhone 15 line. But issues surrounding two patents owned by Qualcomm mean that the latter will continue to supply the vast majority of iPhone 15 handsets with the important component. Had Apple been able to use its own modem chip, Qualcomm’s share of modem chips used on the iPhone 15 series would have been reduced to 20%.

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