By Dominic Chopping
STOCKHOLM (Dow Jones) — Telecom equipment maker Ericsson has filed a series of patent infringement lawsuits against Apple because the US company uses the Swedes’ technology in products like the iPhone without a license. Disputes in the telecommunications industry are not uncommon, as there is a great deal of technology sharing in communications equipment. The latest lawsuits were now filed on Monday.
With the rapid development of entirely new technologies for 5G and the enormous costs involved, developers want to ensure that they recoup the costs through licensing fees if their technology is used by others. Apple first licensed Ericsson’s patents in 2008 when the company released the first iPhone. When that deal expired, a lawsuit by Ericsson against Apple in 2015 resulted in another global cross-license deal between the two companies. Those licenses have now expired after talks to extend the contract to the end of 2021 collapsed.
In October, Ericsson sued Apple, seeking a declaration that the 5G license rate the company had offered Apple was fair, reasonable and non-discriminatory. Ericsson emphasized that the rate was set between $2.50 and $5.00 for each 5G device sold in 2017 to provide transparency and predictability to licensees. Apple filed a counterclaim in December, accusing the Swedish company of using “means of leverage” to extend patents.
“Ericsson has filed a number of lawsuits against Apple for patent infringement in various jurisdictions,” Ericsson said in an emailed statement Tuesday. “Because the previous agreement has expired and we were unable to agree on the terms and scope of a new license, Apple is now using our technology without a license.”
Ericsson spends approximately $5 billion on research and development each year and has received more than 57,000 patents worldwide. The company’s technology is licensed through more than 100 agreements, which currently generate annual sales of approximately SEK 7 billion (EUR 680 million). “We’ve always been willing to pay a fair price for the technology used in our products,” Apple said. “Ericsson has refused to negotiate fair terms for the renewal of our patent license agreement, instead suing Apple worldwide for extortion of excessive royalties.”
Apple added that the company is now asking the court for help in setting a fair price for the essential standard patents that would apply worldwide. “We will continue to defend ourselves against their tactics,” Apple said.
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(END) Dow Jones Newswires
January 18, 2022 13:04 ET (18:04 GMT)