Ericsson on Wednesday took legal action against Apple after the companies failed to reach an agreement on Ericsson’s patent licensing fees.
Apple’s iPhones and iPads have been using Ericsson’s cellular technology under licence. That licence has now expired, and despite two years of negotiations, no new deal has been reached.
The patents cover standard-essential technology; as such, the new licence was offered under what Ericsson considers fair, reasonable, and non-discriminatory (FRAND) terms. Nevertheless, Apple declined to renew it, and on Monday filed a lawsuit in the U.S. District Court for the Northern District of California to find that it does not infring e Ericsson’s patents.
In response, Ericsson has filed a lawsuit of its own in the District Court for the Eastern District of Texas, seeking an independent ruling on whether its patent-licensing offer is consistent with FRAND terms.
"We believe it is reasonable to get fair compensation from companies benefiting from the development we have made over the course of the last 30 years," said Kasim Alfalahi, chief intellectual property officer at Ericsson, in a statement, adding that he hopes to reach a "mutually beneficial" agreement with Apple.
"They have been a valued partner for years and we hope to continue that partnership," he said.
In 2012, Ericsson reorganised its Licensing and Patent Development division in a bid to better monetise its patent portfolio. The move saw Kasim Alfalahi switch from reporting to the CTO, who at that time was Håkan Eriksson, to reporting directly to CEO Hans Vestberg.
That decision appears to be paying off. In 2013, Ericsson’s intellectual property revenues (IPR) jumped to 10.6 billion kronor (€1.1 billion) from SEK6.6 billion in 2012.
