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After Patent Licensing Agreement with Apple, Ericsson (ERIC) Stock Trading Up Almost 5%

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On Monday, Swedish telecommunications company Ericsson ERIC and tech giant Apple Inc AAPL have ended an almost year-long patent dispute and signed a global licensing agreement.

While the specific contract terms have remained confidential, Ericsson said that Apple will pay an initial amount to them along with royalty payments for the next seven years.

The first global patent license between the two companies began when Apple launched its first iPhone back in 2007; the deal expired in January 2015, which is when the disagreements began. During the renewal negotiations, Apple and Ericsson could not reach an agreement on licensing Ericsson's patents.

On Jan. 12, 2015, Apple filed a lawsuit in a United States district court in hopes of a ruling that it was not infringing on seven of Ericsson's patents; days later, however, Ericsson filed a complaint in another U.S. court asking for a ruling that its proposed global licensing conditions with Apple were just.

And starting in February, Ericsson filed suits in many jurisdictions for patent infringement: the International Trade Commission, the U.S. District Court for the Eastern District of Texas, the U.S. District Court for the Northern District of California, as well as courts in the United Kingdom, Germany, and the Netherlands. The Swedish company contended that Apple violated 41 patents over the years with its iPhone and iPad, and in particular, patents connected to GSM, UMTS and LTE technologies.

With the new patent agreement, Ericsson has dropped all of its lawsuits; Apple and Ericsson have plans to collaborate on new technology like the jump to 5G networks, video networks traffic management, and network optimization.

Ericsson's stock saw a nice boost in early trading Monday, surging 7%. Currently, the company is up 4.38%, or $0.40, to $9.53. Apple stock is down as of 11:25 AM EST, dropping a slight 0.10%, or $0.10, to $105.99.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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