Ericsson has signed an agreement with Apple that will see the latter pay Ericsson a pre-specified amount on the sale of every unit of the iPhone and iPad. Ericsson had filed a patent infringement case against Apple accusing it of violating its 41 patents related to GSM, UMTS and LTE technologies.
Apple had then countersued Ericsson by saying that its royalty fees was too high.
Now since both companies have reached an agreement, Ericsson has dropped all its lawsuits against Apple. The agreement will see Apple pay Ericsson a small sum of money as royalty for use of its patented technologies inside the iPhone and iPad. For 2015, Apple will be making Ericsson a lump-sum payment, but from next year onwards, it will be paying a royalty fee on every unit of the iPhone and iPad it sells.
The exact amount that Apple is supposed to pay to Ericsson this year and on every unit of the iPhone and iPad it sells from next year is unknown, but looking at how Apple dominates the smartphone market and takes home a majority of the profit earned by the industry, I don’t expect this sum to be small.
As a part of the agreement, Apple and Ericsson will also be working closely on the 5G network technology and network optimisation.