CALIFORNIA: Swedish telecommunications equipment maker Ericsson said it had filed a complaint against Apple in a US court over the technology giant`s use if its technology in Smartphone.
The complaint came after Apple filed a case against the Swedish company, claiming that Ericsson`s LTE wireless technology patents are not essential to industry standards and that the Swedish company was demanding excessive fees to renew a licensing agreement.
Ericsson responded by filing a claim in the US Court to determine whether it has made “a fair, reasonable and non-discriminatory” licensing offers to Apple for its “standard essential” LTE patents.
“Every Apple smartphone or tablet that has cellular connectivity needs our technology,” said Kasim Alfalahi, Ericsson’s Chief Intellectual Property Officer.
Mr. Alfalahi told that Ericsson is now seeking the court’s help because Apple has rejected its licensing offers in negotiations that have lasted for two years.
“We’ve always been willing to pay a fair price to secure the rights to standards essential patents covering technology in our products,” an Apple spokeswoman said. “Unfortunately, we have not been able to agree with Ericsson on a fair rate for their patents so, as a last resort, we are asking the courts for help.”
The public version of Apple’s complaint, which was redacted, doesn’t disclose the amount of money involved.
Ericsson’s Mr. Alfalahi also declined to discuss the financial aspects of the case. In 2013 Ericsson’s licensing revenue was 10.6 billion Swedish kronor ($1.3 billion).
However, Mr. Alfalahi contradicted Apple’s view and said that “as of now, we don’t have an agreement between the two companies.”
Also at dispute is the way any potential royalties should be determined. Apple said royalties should be based on the value of the chip that includes the LTE technology.
Ericsson is seeking royalties that are “connected to the value our technology is providing” for the entire device, Mr. Alfalahi said.
If Ericsson’s patents are deemed essential and the court rules Apple has infringed them, Apple said it wants the court to assign a “reasonable royalty rate.”
Patent and intellectual property disputes are common in the mobile device and wireless technology industries. Apple and the Finnish telecom equipment supplier Nokia settled a two-year-long litigation in June 2011 after Apple agreed to pay undisclosed compensation to Nokia.
