Apple Inc. and Ericsson have settled their year-long dispute over mobile-device patent by signing an agreement. They agreed to collaborate and work together to develop many technological areas specifically 5G technology.
Details of the agreement were confidential, but according to IBT, Ericsson will initially be paid by Apple then continuously get paid for the royalties during the seven-year contract. The Swedish company said they are happy with the new agreement they come up with Apple, it clears the way for both companies to focus on much more important things like building new technology for the market. Kasim Alfalahi, chief intellectual property officer at Ericsson, also said in the statement that he hopes for more joint business opportunities in the future.
The Wall Street Journal reported that this was not the first agreement between the two giant companies. The first iPhone was launched with the help of Apple's patent agreement with Ericsson. The said agreement ended earlier this year and the two companies weren't able to reach a deal on licensing of Ericsson's patents. That's were the first dispute between Apple and Ericsson started, time-consuming and expensive lawsuits were filed one after another making the dispute bigger. However, things were settled, lawsuits pending in the U.S., U.K., Netherlands and Germany courts have ended because of the new agreement.
According to Bloomberg Intelligence's Matt Larson on Yahoo Finance, Ericsson may have gained more with this agreement. There was a 40% increase in Ericsson's intellectual property licensing revenue. Moreover, with just the news of the agreement being released, Ericsson's shares increased up to 3%. But he also stated that Apple may have gotten what it wants that's why it settled with Ericsson.
This agreement is obviously good for both companies. Development of 5G is on its way and the progress both companies are making is great for the technology market.
