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.

Source: Reuters
Via: 9to5 Mac

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bits Read more about Stephen Schenck!