The settlement resolves lawsuits filed by both companies in multiple jurisdictions, including the United States District Court for the Eastern District of Texas, as well as lawsuits filed with the United States International Trade Commission (USITC). Ericsson’s IPR royalty income continues to be impacted by several factors, including expiring patent license agreements pending renewal, technology shift from 4G to 5G, and potential future currency and geopolitical implications.
Ericsson and Apple have entered into a multi-year global patent licensing agreement between the two companies. The agreement cross-licenses the patented Standard Essential cellular technology and grants certain other patent rights. In addition, Ericsson and Apple have agreed to strengthen their technology and business collaboration, including in the areas of technology, interoperability, and standards development.
Including the ongoing IPR business with all other licensees, including the impact of the agreement with Apple covering sales from January 15, 2022, Ericsson expects IPR royalty income in the fourth quarter of 2022, is estimated to be between €5.5 billion and €6 billion. SEC. Ericsson’s Chief Intellectual Property Officer Christina Peterson said: This will allow both companies to remain focused on bringing the best technology to the global market”. For decades, Ericsson has contributed to the development of 3GPP and global wireless standards for the benefit of consumers and businesses around the world.
With more than 60,000 issued patents, the value of Ericsson’s patent portfolio is underpinned by its leading position as a 5G vendor and over $4 billion in annual R&D investments. The company is confident of growing IPR revenue with its new 5G contract and long-term expansion into other licensing areas.