Apple has launched a lawsuit against Ericsson, alleging that the Swedish company is demanding excessive royalties for its LTE patents, Reuters reports. In the suit, Apple claims that Ericsson’s patents are “not essential to industry cellular standards” and that it does not owe Ericsson royalties for the patents as it has not infringed upon them. Apple’s suit further states that, should the patents be deemed essential by the courts, the royalties that Ericsson requires should be based on the value of the processor chip that includes LTE technology, rather than as a percentage of the price of an entire smartphone or tablet that incorporates the technology.
The two companies have had a license agreement for the use of Ericsson’s patents since 2008, shortly after Apple launched the original iPhone. However, an Apple spokesperson noted that the company has “not been able to agree with Ericsson on a fair rate” for the patents in question, and is therefore asking the courts to intervene.
Update: In a follow-up report, Reuters notes that Ericsson has filed its own complaint against Apple, stating that Apple’s license to use its LTE technology had previously expired, and that it has been unable to come to a new deal after two years of negotiations.
The company has asked the court to determine whether its license offer to Apple is fair. The company’s Chief Intellectual Property officer made a similar statement to the one in Apple’s filing, noting that it needs “the help of a third party” to help negotiate a new agreement.
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