Apple and Ericsson come to (lucrative) terms over patent licensing dispute
Last time we checked in with Apple’s quarterly financial report, the company was selling something like 48 million iPhones, bringing in revenues north of $32 billion – just for smartphones alone. As massive as those numbers are, what if you had just a tiny slice of that action? Even a fraction of a penny from each iPhone dollar coming in to Apple would represent some big money, and that’s just what Ericsson appears to be looking forward to, as the company settles its dispute with Apple and signs a patent licensing deal.
Apple needs Ericsson’s patents covering cellular data technology in order to sell the iPhone and cell-connected iPad models, but for a while now the two companies have been butting heads over just much Apple should ultimately pay Ericsson for the rights to use that tech. For the past year now they’ve been taking that fight to court, but that’s finally over.
Formally, neither party has publicly revealed just how much money this new-found understanding involves, but one estimate has Apple agreeing to pay Ericsson one-half of one percent of all revenue from applicable hardware – including all iPhone sales. Even if the real figure’s slightly different, we’re still talking about hundreds of millions of dollars a year. Understandably, Ericsson shares are on the rise following publication of this news.