Apple, Ericsson sue each other over 5G patent negotiations

On Tuesday, Apple sued Ericsson in a federal court in Texas, after the Swedish gear maker sued it in the same court, accusing it of negotiating in "bad faith".

Apple, Ericsson Engage in Another Legal Battle

Incidentally, Apple and Ericsson have a licensing agreement for the former to use the latter's 5G technology in their devices. However, that agreement will run out in a week, and thus, litigations are sure to fly. First reported by Bloomberg Law, Apple filed the lawsuit on Friday.

The tech giant has accused Ericsson of two things; “violating its obligations to license patents essential to industry standards on fair rates" and "making unreasonable demands”. This is not the first time they have sued each other; in 2015, they had both sued each other while negotiating the now-expiring licensing deal. That battle got so bitter that Ericsson tried to get the iPhone banned from the US. Amid renewal attempts, these two lawsuits are another headache both parties have to endure.

In the lawsuit, Apple further accused the Swiss telecom giant of using “strong-arm tactics” in negotiations for patented tech. Interestingly, the deal that the two parties had previously covered 2G, 3G, and 4G. As such, this new deal has to cover 5G as well, and that is where the negotiations hit a snag.

For now, the companies prepare for another legal battle over 5G.

11th Hour Rush for Apple

Media reports have stated that Ericsson had started negotiations for a new patent licensing agreement around this time last year. However, Apple has said that Ericsson’s rates aren’t FRAND. Also, it has insisted that adhering to "Apple’s self-declared methodology" is the only way for them to become FRAND. However, Ericsson has said that Apple has demanded that standard-critical patents owners grant it permission to examine, value, and license each patent in its portfolio at Apple’s discretion. The Swiss telecom gear maker also said that Apple asked it to prove that every patent is essential, valid, and infringed.

And thus, it brings us to the report that Apple has sued Ericsson, accusing Ericsson AB of using 'strong-arm tactics' in negotiations to renew a 2015 license for technology critical to industrywide telecom standards, particularly for 5G. Incidentally, this lawsuit also alleged that Ericsson has violated obligations to license patents crucial to industry standards at fair rates. Also, Apple has accused Ericsson of making unreasonable demands.

Ericsson, on their part, filed a countersuit in the same court. Florian Mueller, an award-winning IP activist who blogs under 'Foss Patents,' has said that barring an 11th-hour agreement, both the companies are going towards patent litigations. Incidentally, there is another Nordic telecom gear maker who has an agreement with Apple that runs out soon; with Nokia's deal expiring soon, Apple has got some very important tasks at hand.