Ericsson said that under the agreement it will be paid an undisclosed amount by Apple, along with ongoing royalties over seven years. Kasim Alfalahi, Ericsson’s chief intellectual property officer, described the agreement with Apple as ‘quite broad’ and covering a number of patents that are necessary for 2G, 3G and 4G technologies to work.
Share price up
Details of the contract are confidential, but news of the agreement sent Ericsson’s shares up as much as eight per cent. UBS analysts estimated the agreement would boost Ericsson's operating profit by 13 per cent in 2015 and 10 percent in 2016, providing 775 million crowns per quarter in licensing fees.
Complex relationships
Ericsson's deal with Apple echoes a January 2014 patent agreement with Samsung, which also followed a legal dispute. It also highlights the complexity of relationships in the telecommunications sector, where the sharing of research and development necessary for the standardisation of technologies has led to legal proceedings between manufacturers and smartphone makers over their fair use. Sources: Reuters; The Wall Street Journal
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