Swedish telecom company Ericsson signed a patent agreement with Apple Inc, Monday, ending one of the biggest mobile tech battles in history that lasted for a year.
Reuters reported that the patent licensing agreement was over a technology that would make it easier for tablets and smartphones to connect to mobile networks. According to Ericsson, this deal doesn't only end a legal conflict, but also create more opportunities for cooperation between the two giant firms. After the announcement about the company signing the patent deal, Ericsson's shares increased by 8 percent.
The new patent covers the companies' 2G, 3G, and 4G wireless standards, according to ZDNet. The companies have been countersuing each other in US and European courts since January last year. The legal battle is about how royalties should be paid and calculated.
Apple has been paying Ericsson royalties since 2008. However, the iPhone maker stopped paying royalties after an agreement expired last year. Now, the new patent agreement addresses the patent issue between the two giant tech companies.
Apple Insider wrote that Ericsson's intellectual property revenue in 2015, which includes the new Apple agreement, is projected to hit as much as 14 billion crowns, or $1.64 billion, up from last year's 9.9 billion crown. According to investment bank ABG Sundal Collior, Apple is charged with an estimated 0.5 percent of its income from iPhones and iPads, which could mean hundreds of millions of dollar a year for Ericsson.
Ericsson chief intellectual property officer Kasim Alfalahi said, "It means we can continue to work with Apple in areas such as 5G radio network and optimization of the network."
Ericsson had another dispute with Samsung that mirrors its legal battles with Apple. Meanwhile, Finland's Nokia will get an arbitration verdict by January on how much Samsung will pay it in patent licensing. This increases Nokia's share by 2.4 percent.
