Apple and Ericsson Battle Over Patents

Apple and Ericsson have gone to court to determine a reasonable
rate for cellular phone technology patent use.
Image: Twin Design / Shutterstock.com

Apple Inc. and Swedish telecom equipment maker Ericsson are suing each other in a US court over a dispute regarding patent royalties.  The companies, which have worked together since 2008, are unable to agree on how much Apple should pay Ericsson for the use of technology Ericsson claims is necessary for the high-speed wireless technology used in iPhones.

Filed in the US District Court for Northern California on Monday, the lawsuit is set to determine if Ericsson’s patents are “essential” for the “Long Term Evolution,” or LTE, wireless communication standard.

“Every Apple smartphone or tablet that has cellular connectivity needs our technology,” said Kasim Alfalahi, Ericsson’s Chief Intellectual Property Officer.  However, over the past two years, the companies have been unable to come to an agreement on how much such a technology is worth.

Ericsson has stated it adheres to industry standards of fair, reasonable, and nondiscriminatory patent licensing (FRAND) in its patent dealings; however, Apple remains unconvinced that the Ericsson patents are truly essential for cellular network connection and data transfer.  They have turned to the courts to help them determine if the patents are essential in legal terms and, if so, how much is a reasonable royalty rate for Apple to be paying.

"Our goal is to reach a mutually beneficial resolution with Apple," said Alfalahi in a statement on Wednesday. "They have been a valued partner for years, and we hope to continue that partnership. We believe it is reasonable to get fair compensation from companies benefiting from the development we have made over the course of the last 30 years."