PHOTO: BLOOMBERG NEWS

Ericsson has signed a global patent agreement with Apple to end legal proceedings regarding 5G patent royalty payments for use in iPhones.

This new multi-year agreement confirms an ongoing agreement that involves a cross-license on patented cellular standards-essential technology, and some other important patent rights.

By the agreement between the two tech giants, this settlement resolves the suits filed by both companies in several countries, including lawsuits in the Eastern District Court of Texas and the complaints filed with the United States International Trade Commission (USITC).

Apple and Ericsson will cooperate to develop innovative, cutting-edge technology to advance the general mobile telecommunications industry.

The agreement covers a range of products from both companies and ends a period of more than two years of litigation between the two tech giants. The settlement includes royalties for past sales of certain Ericsson products.

The settlement ends legal disputes over intellectual property issues, allowing both companies to focus on developing innovative technologies and products without being distracted by the costs and risks associated with litigation.

After both companies sued each other at the end of last year, Ericsson filed a second set of patent infringement lawsuits against Apple earlier this year.

"We are pleased to settle the litigations with Apple with this agreement, which is strategically important to our 5G licensing program. This will allow both companies to continue to focus on bringing the best technology to the global market," said the company in a statement from its chief intellectual property officer, Christina Petersson.

In the months following the settlement, Ericsson projected quarterly IPR license revenues of between $530.3 and $578.5 million, taking the effect of the settlement and regular IPR business with other licensees, into account.

The agreement is also indicative of a move towards cross-industry collaboration and licensing. As technology becomes ever more complex, agreements between competitors can ensure that everyone can benefit from shared advancements.

This agreement is good news for both Apple and Ericsson and will benefit consumers and businesses alike. This settlement is just one example of the many possibilities for cooperation in the tech industry and a sign that collaboration can be beneficial even in a competitive industry.

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