Ericsson Settles Dispute with Apple, Apple to Pay 0.5% of Future iPhone and iPad Sales

Swedish telecommunications company, Ericsson, has finally reached an agreement with Apple, settling a drawn-out dispute over patents.

Ericsson, pioneers in the wireless technology industry, currently holds over 37,000 patents, many relating to the cellular and wireless communications field. The company has been involved in disputes with Apple since 2012.

Ericsson has been developing mobile technology for decades.

This past February, Ericsson filed several patent infringement suits against Apple, claiming that technology used in the iPhone and iPad violated 41 of Ericsson’s patents relating to 2G, 3G, and 4G/LTE technology. Ericsson followed with an attempt to get the International Trade Commission to ban iPhone sales in the US. An investigation was launched in March before Ericsson extended the suit to Europe in May.

A deal reached this morning satisfied both companies, with Ericsson dropping all suits against Apple. Apple will reportedly pay a lump sum payment to Ericsson, and will continue to pay royalties in the future, including a small percentage of future iPhone and iPad revenue.

While the specifics of the agreement have not yet been made public, an estimate by investment bank ABG Sundal Collier has Apple paying out 0.5% of future iPhone and iPad sales. According to Reuters, Ericsson’s estimated overall revenue from intellectual property rights in 2015 will hit $1.52-1.64 billion, up from $1.15 billion in 2014 as a result of the agreement.

According to a press release from Ericsson, the two companies will look to “collaborate in multiple technology areas, including 5G developments, video network traffic management, and wireless network optimization” in the future.

Shares of the Swedish company’s stock were up almost 5% this morning after the deal was announced.

Learn More: After Years-long Battle, Samsung to Pay Apple $548 Million for Design and Technology Patent Infringements