In February we reported that Ericsson sued Apple for infringing 41 of their telecom related patents. We noted in our report that Apple may have been relying on a recent IEEE ruling on how royalties should be paid to patent owners, because Ericsson is adamant on demanding that the royalty formula should be based on past FRAND terms. Instead of heading to court in 2016, it's now being reported that Ericsson has signed a patent license deal with Apple sending its shares up 8 percent.
Reuters reports that "The deal ends a year-long dispute with Apple, one of the biggest legal battles in mobile technology and Ericsson said it would pave the way for cooperation between the companies on future technologies.
Ericsson had said in its filing to a U.S. district court in January that Apple's license to use the technology developed by the Swedish firm had expired, and that two years of negotiations had not led to a new deal.
Ericsson on Monday estimated overall revenue from intellectual property rights in 2015 would hit 13 to 14 billion crowns ($1.52-$1.64 billion) up from 9.9 billion in 2014 as a result of the agreement.
Ericsson Chief Intellectual Property Officer Kasim Alfalahi said the agreement was broad, covering the latest 4G-LTE generation of mobile technology, as well as the earlier 2G and 3G technologies."
"It means we can continue to work with Apple in areas such as 5G radio network and optimization of the network," Alfalahi told Reuters, but declined to provide further financial details. No comment from Apple was noted.