Ericsson has signed a patent license deal with Apple Inc. over the technology that allows smartphones and tablets to connect to a mobile network, ending the year-long legal dispute between the two involved mobile companies.
The battle started when Ericsson filed a claim at the U.S. District Court that Apple's license to use Ericsson's technology has expired, yet the iPhone maker has not stopped using the technology despite the lack of a new contract, according to Yahoo News.
Information on the newly signed patent has not been disclosed, but Ericsson's shares shot up by 8 percent after the announcement, Yahoo News added.
"A settlement outside of a court was definitely our preferred way," said Kasim Alfalahi, Ericsson's chief intellectual property officer, according to Wall Street Journal. "We invest about 30 billion kronor ($3.51 billion) a year in research and development and license our patents to the whole industry. We expect fair returns to be able to continue to invest."
With the new settlement, the Swedish company's estimated revenue from the intellectual property rights will be at $1.53 billion this year.
Currently, Ericsson holds an estimated 37,000 patents for its mobile communication technology, with more than 100 patent licensing agreements.
