Ericsson has signed a seven-year global patent license agreement with Apple which will see the Cupertino-based company make an unspecified initial payment to the Swedish network giant, as well as paying on-going royalties.
Including the settlement, and payments from other licensees, the Swedish vendor estimates full-year 2015 intellectual property revenue at between SEK13 billion ($1.52 billion) and SEK14 billion. That sum would be a significant increase from the SEK9.9 billion reported in 2014.
Investment bank ABG Sundal Collier said in a note that the agreement means Apple will be charged around 0.5 percent of its revenue on iPads and iPhones by Ericsson. The note was quoted by Reuters.
The patent agreement is broad, covering 2G, 3G and 4G, as well as certain other patent rights which are not spelt out.
In addition, the agreement resolves all legal action between the two companies. The patents feud between Apple and Ericsson has been ongoing for the past year.
The deal ends investigations before the US International Trade Commission, lawsuits pending in the US District Court for the Eastern District of Texas and the US District Court for the Northern District of California, as well as lawsuits in the UK, Germany and the Netherlands.
Ericsson said the end of the legal skirmish also means the two companies can now collaborate across a number of technologies, including 5G, video network traffic management and mobile network optimisation.
“We are pleased with this new agreement with Apple, which clears the way for both companies to continue to focus on bringing new technology to the global market, and opens up for more joint business opportunities in the future,” said Kasim Alfalahi, chief intellectual property officer at Ericsson.