Ericsson Vs Apple Battle Continues, Claiming Patent Royalties

5G technology from Apple is patented by Ericsson. (photo: unsplash)

JAKARTA - Swedish mobile phone maker Ericsson has filed a series of lawsuits for patent infringement against Apple in the latest war between the two companies over royalty payments for the use of 5G wireless patents in iPhones.

The two companies have sued each other in the United States over failed negotiations over the renewal of a seven-year licensing contract for a telecommunications patent that first took place in 2015.

Ericsson first sued last October, claiming that Apple tried to improperly cut royalty rates. The iPhone maker filed a lawsuit in December accusing the Swedish company of using "forceful tactics" to renew patents.

"Since the previous agreement expired, and we were unable to reach an agreement on the terms and scope of the new license, Apple is now using our technology without a license," an Ericsson spokesperson said, as quoted by Reuters.

That statement seemed to infuriate Apple. But Apple did not immediately respond to requests for comment from the media.

Patent lawsuits are quite common among tech companies as every dollar saved can be significant for the duration of the agreement as companies like Ericsson charge between 2.5 to 5 US dollars for each 5G handset.

The Swedish company also invests about 5 billion US dollars annually in research, even has a portfolio of more than 57,000 patents, and royalties from its patent portfolio account for about a third of its operating profit. This is certainly extraordinary, for the former king of mobile phones in the early 2000s

Last year Ericsson settled a patent lawsuit with Samsung after months of court battles that temporarily hit its quarterly earnings. Pending dues are usually removed once settlement is reached.

Now with Apple, they hope to get back additional coffers for royalties on 5G technology patents used by the opposing party.