- Agreement includes global cross-license for patented cellular standard-essential technologies and grants certain other patent rights.
- Settlement ends all ongoing patent-related legal disputes between the parties.
- Including effects of the settlement, and including ongoing IPR business with all other licensees, Ericsson estimates fourth quarter 2022 IPR licensing revenues will be SEK 5.5 - 6.0 b.
STOCKHOLM, Dec. 9, 2022 /PRNewswire/ -- Ericsson (NASDAQ: ERIC) and Apple have reached a multi-year, global patent license agreement between the two companies. The agreement includes a cross-license relating to patented cellular standard-essential technologies and grants certain other patent rights.
Furthermore, Ericsson and Apple have mutually agreed to strengthen their technology and business collaboration, including in technology, interoperability and standards development.
This settlement ends the lawsuits filed by both companies in several countries, including in the United States District Court of the Eastern District of Texas, as well as the complaints filed before the United States International Trade Commission (USITC).
Ericsson's IPR licensing revenues continue to be affected by several factors, including expired patent license agreements pending renewal, the technology shift from 4G to 5G, and possible currency effects and geopolitical impact going forward. Including effects of the agreement with Apple covering sales from January 15, 2022, and including ongoing IPR business with all other licensees, Ericsson estimates the fourth quarter 2022 IPR licensing revenues will be SEK 5.5 - 6.0 b.
Christina Petersson, Chief Intellectual Property Officer at Ericsson says: "We are pleased to settle the litigations with Apple with this agreement, which is of strategic importance to our 5G licensing program. This will allow both companies to continue to focus on bringing the best technology to the global market."
Over several decades, Ericsson has been a leading contributor to 3GPP and to the development of global mobile standards for the benefit of consumers and enterprises everywhere. The value of Ericsson's patent portfolio of more than 60,000 granted patents is strengthened by our leading position as 5G vendor, and annual investments of more than USD 4 b in R&D. The company is confident of growing its IPR revenues with new 5G agreements and by expanding into other licensing areas long term.
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Ericsson enables communications service providers and enterprises to capture the full value of connectivity. The company's portfolio spans the following business areas: Networks, Cloud Software and Services, Enterprise Wireless Solutions, Global Communications Platform, and Technologies and New Businesses. It is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's innovation investments have delivered the benefits of mobility and mobile broadband to billions of people globally. Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
This release includes forward-looking statements, including statements reflecting management's current views relating to the growth of the market, future market conditions, future events, financial condition, and expected operational and financial performance, including, in particular the following:
- Our expectations regarding IPR licensing revenues, including the new agreement with Apple in the fourth quarter 2022
- Our goals, strategies, planning assumptions and operational or financial performance expectations
- Industry trends, future characteristics, and development of the markets in which we operate
- Our future liquidity, capital resources, capital expenditures, cost savings and profitability
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- The ability to deliver on future plans and to realize potential for future growth
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Ericsson and Apple sign global patent license agreement
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