Ericsson sues Apple over patents in Germany, UK and Netherlands

Ericsson has stepped up its legal pursuit of Apple in European courts, arguing that the US group should be forced to pay for a licence to use the Swedish group's technology in iPhones and iPads.

Stockholm-based Ericsson said on Friday that it had filed legal suits in Germany, the United Kingdom and the Netherlands against Apple over its products, including the iPhone and iPad. 

"Apple continues to profit from Ericsson's technology without having a valid licence in place," said Kasim Alfalahi, chief intellectual property officer at Ericsson. 

"Our technology is used in many features and functionality of today's communication devices. We are confident the courts in Germany, the UK and the Netherlands will be able to help us resolve this matter in a fair manner."

Ericsson said that it had offered to enter into arbitration with Apple to reach a global licensing agreement for its standard-essential patents, but that offer has now expired.

Apple was not immediately available for comment. However, the group has launched a counter suit in the federal court in California alleging that it has not infringed patents and does not owe royalties to the Swedish company.

Ericsson has asked the German, Dutch and British courts to determine whether or not Apple had been using the Swedish group's patents in its devices. If that ruling comes out in Ericsson's favour, the group is asking for injunctions that would prevent Apple from selling its popular ranges of smartphones and tablets in all three countries.

The proceedings in the three countries refer to standards for so-called 2G and 4G/LTE technology that are seen as essential for use in smartphones, as well as the design of semiconductor components and non-cellular wireless communications.

Ericsson said that it had been trying to reach an agreement with Apple on a global licence for Ericsson's patents for two years, but "the companies have failed to reach an amicable resolution". Ericsson's lawsuits in Europe are part of broader efforts to protect and support its investment in R&D, it added.

Ericsson, along with Scandinavian rival Nokia, is one of the largest owners of essential technology in the smartphone industry with more than 37,000 granted patents. It has built a large business from licensing this to smartphone makers, but it no longer makes its own smartphones since selling a half share in a joint venture to its erstwhile Japanese partner in 2011.

The Swedish group's financial results in the last quarter were hit by the lack of agreement with Apple over licensing terms, which contributed to a shock drop in its profitability.

Under intellectual property rules, the company needs to provide patents deemed "essential" on fair and reasonable terms to any licensed user. Essential patent owners such as Ericsson are compensated in proportion to their contribution to the standardised technology. Ericsson has signed more than 100 patent-licensing agreements with most major players in the industry.

Ericsson has already started a similar pursuit of Apple in the US courts, where it has also asked for a court hearing to determine whether the Swedish technology group's 4G mobile patents are essential for the manufacture of the iPhone and how much the US group should pay.

Apple also alleges that Ericsson has demanded excessive royalties for patents based on a percentage of the price of the smartphone or tablet rather than the value of the processor chip.

© The Financial Times Limited 2015. All rights reserved.
FT and Financial Times are trademarks of the Financial Times Ltd.
Not to be redistributed, copied or modified in any way.
Euro2day.gr is solely responsible for providing this translation and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation