Ericsson wants royalties calculated based on the price of the entire device, not just the LTE chips

Jan 14, 2015 11:02 GMT  ·  By

Apple has filed a lawsuit against telecoms gear maker Ericsson over a royalty dispute involving LTE (4G) wireless technologies licensed by the latter per-device-sold. The Cupertino giant has no problem paying, but it believes the fees are a tad too high.

Filed by Apple in the U.S. District Court of Northern District of California, the suit alleges that Ericsson’s LTE patents are not essential to industry standards, and that Apple shouldn’t actually pay anything to the Swedish company for using LTE.

However, if the court does conclude that some fees are indeed in order, Apple wants these fees lowered, at the very least.

We just can’t get along

Apple reveals in its court filings that the two companies have an agreement signed way back in 2008 which covers standard-essential patents, likely relating to the new wireless standards embedded in the iPhone 3G, which was the company’s second-generation iPhone and the first model to boast cellular connectivity faster than EDGE.

The agreement doesn’t say anything about LTE technologies, which came afterwards.

According to Reuters, Apple spokeswoman Kristin Huguet said, “We've always been willing to pay a fair price to secure the rights to standards essential patents covering technology in our products. 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.”

Apple regularly prefers to settle such disputes without involving the courts, and generally does so when the situation allows it. However, it appears that Ericsson isn’t willing to let this one slip. We’ll keep an eye out for any new developments regarding this matter and will report back when we have the details.