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Apple Agrees To Pay Part Of iPhone And iPad Revenue To Ericsson Under Patent Deal

21 December 2015, 11:01 am EST By Mark Lelinwalla Tech Times
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Now, every time Apple sells an iPhone or iPad, portions of its revenue will go right into Ericsson's pockets.

Reuters reports those are the conditions under a patent license deal that Ericsson has signed with Apple over Ericsson-patented technology that allows smartphones and tablets to connect to mobile networks.

Although Ericsson didn't reveal how much it will make from the seven-year deal, an ABG Sundal Collier investment bank rep told Reuters that Apple will be paying the Swedish mobile company 0.5 percent of its iPhone and iPad revenue. The patent deal also means that Ericsson is now being paid by both Apple and Samsung thanks to patent deals, specific to LTE technology.

Ericsson's chief intellectual property officer Kasim Alfalahi told Reuters that the agreement covers the latest 4G-LTE technology in addition to previous 2G and 3G technologies.

"It means we can continue to work with Apple in areas such as 5G radio network and optimization of the network," Alfalahi told Reuters.

This comes after Apple took Ericsson to court in January, alleging the company of making its patent fees too steep. Ericsson responded with a counter lawsuit against the tech giant, saying that two years of negotiations over the patent prices failed to reach any sort of agreement.

Although things looked insoluble then, Apple did provide a glimmer of hope saying it had respect for Ericsson's intellectual property and was willing to pay a fair price for rights to them.

That paved the slow, but sure way for this resolution, as announced Monday.

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