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| 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."
"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."
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