Ericsson Sues Apple Again Over 5G Patent Licensing Infringements

The two companies have been at odds over royalty payments for the use of 5G wireless patents in Apple's phones.

Both companies sued each other in the US after negotiations failed over the renewal of a seven-year licensing contract for telecom patents.

Despite long negotiations, the two companies have been unable to reach a new patent-licensing agreement that also covers 5G, and in October, Apple was sued by Ericsson for trying to reduce royalty rates. Apple accused the Swedish company of using "strong-arm tactics" in its bid to renew patents.

The terms and scope of a new license were not agreed upon after the prior agreement expired, a spokesman for the Swedish company told the news agency.

The portfolio of telecommunications patents is vast, but it is a relative minnow in the smartphone business. Around a third of the company's operating profit is from royalties from its patents. The company usually collects between $2.50 and $5 per phone for its 5G patent.

According to a recent filing, that's the rate it still wants to collect: "Ericsson is willing to continue to offer Apple our publicly announced 5G multimode rate of $5 per phone (with a $1 early signing discount) a rate which we will continue to honor assuming we execute

Apple believes that it now holds a share of declared 5G patent families that is comparable to the share of Ericsson. Apple thinks its net payments to Ericsson should decrease.

Apple published a statement on its website after it acquired Intel's patents. Apple warned against companies that use the power of standardization to eliminate competition through patent licensing or excessive royalties.

Despite its position, the intellectual property expert who runs the website, called the Foss Patents website, believes that Apple is fighting a losing battle and that it has the advantage thanks to the recent terms it agreed with SAMSUNG for the use of its 5G patents.

Muller says that the only leverage Apple has is "hold-out." I believe that the terms of the license deal between the two companies involve a somewhat lower royalty rate on the phones that cost less than an Apple device, but that even if the terms of the license come into play, even if the phones cost less than an Apple device, even if the terms