Telecom equipment manufacturer Ericsson announced the signing of a patent agreement with Apple that put an end to the annual dispute and led to a surge in the shares of the Swedish company almost 7%. Agreement with the American Corporation signed a term of 7 years.
The agreement allowed the companies to settle the lawsuit and to start cooperation. Ericsson did not specify how much she earns thanks to the agreement, but estimated total revenue from the intellectual property rights in 2015 to $1,52 to$1.64 billion (13-14 billion kroons), including a positive impact of the settlement of the dispute with Apple, compared with 9.9 billion kronor in 2014.
“We are pleased to conclude this new agreement with Apple, which paved the way for both companies to bring new technologies to the global market and opens up more business opportunities in future”,— quotes the words Ericsson Director for the company’s intellectual property Kashima Alfalahi.
Investment Bank ABG Sundal Collier said in a note to clients that, in his opinion, the agreement means that Ericsson will charge Apple about 0.5% of revenue from sales of iPad and iPhone.
According to Alfalahi, the agreement with the manufacturer of iOS devices large and includes the latest generation of mobile communications technology 4G-LTE as well as the earlier technology 2G and 3G. Also Apple will make an initial payment to Ericsson.
“This means that we will be able to continue working with Apple in the areas of 5G wireless networks and network optimization”, – told Reuters Alfalahi. The financial terms of this agreement are not given.
Ericsson filed a complaint against Apple in January, in connection with patent infringement in response to a lawsuit filed by the manufacturer of the iPhone. To get comments from Apple so far failed.