Apple and Ericsson, on Monday, have signed a global patent agreement that includes a global cross-license for patented standard-essential technologies and grants certain other patent rights relating to both companies.
The deal will see Apple being allowed to use the Swedish company’s communications and technology services and intellectual property while both parties have also agreed to end all ongoing litigation between them.
The two companies will also collaborate in multiple technology areas including development of 5G technology – the next generation of mobile data communication and optimize existing wireless networks and video traffic management.
“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,”
The new agreement sends Ericsson’s shares up much as 8 percent.
While no specific figure has been announced by Ericsson, but it estimated overall revenue from intellectual property rights in 2015 would hit 13billion krona to 14bil krona, including positive effects from the settlement with Apple, up from 9.9billion kr0na in 2014.
Apple will make an initial payment to the Swedish group and then pay royalties.
The End of the Battle Between Apple & Ericsson
The two companies previously had a patent licensing deal, but Apple refused to renew its licence when it expired back in January.
The deal ends a year-long dispute with Apple, one of the biggest legal battles in mobile technology and Ericson, starting in the beginning of 2015 over an expired patent licensing deal. Apple fired the first lawsuit off, claiming that Ericsson was asking too much for standards-essential patents, with Ericsson filing a counter-suit at Apple in Texas arguing that the firm is using patented kit in the iPhone and is going out of its way to avoid paying the monetary tribute.