Apple And Ericsson In Court Over LTE Wireless Patent Royalties

It's been a while since we have seen a major lawsuit between major technology firms, but we have a new one today. Apple has filed suit against Ericsson over LTE patents that Apple claims aren't essential to industry cellular standards. Apple alleges that Ericsson is demanding excessive royalties for the patents in question.

Apple also notes that it has not infringed on the patents and does not owe royalties to Ericsson for their use. According to Apple, Ericsson is seeking royalties on the patents deemed essential for the industry that are a percentage of the price of the entire smartphone or tablet.

Apple believes that the royalties should be based on the value of the processors chip that includes the tech inside. Apple filed the suit against Ericsson in a federal court in California recently. If Apple loses the suit and the patents held by Ericsson are deemed essential, Apple wants the court to set a more reasonable royalty rate.

Apple says that it has always paid a fair price to use essential patents, but that it has been unable to come to a fair price agreement with Ericsson. The last resort in the matter according to Apple is to ask the court for help.

SOURCE: Reuters