Ericsson sues Apple, files request to block iPhones from US market

Ericsson sues Apple, files request to block iPhones from US market
Ericsson has filed seven new lawsuits in a US court, additionally to filing a request with the International Trade Comminsion to block iPhones from being sold on US soil. Well, didn't that escalate quickly?

Just a month ago, the two companies were at it, while trying to settle a dispute over how much in royalties Apple should be paying to Ericsson. Apparently, the latter holds around 41 patents on different connectivity-related tech, which could all be found in iPhones. Up until this point, the two had a royalty agreement, and the patents were licensed to Apple to use on their handsets in exchange for an ongoing payment. However, back in January, said deal expired, and at this moment Cupertinians decided to argue that Ericsson wants way too much money for its licenses – according to Apple, having the royalties be calculated based on the price of the whole handset is not right, since the cost of a device is determined by its design, screen, and operating system, thus – cutting a piece of the whole pie and giving it to Ericsson would mean that the latter is “exploiting its patents to take the value of these cutting-edge Apple innovations". Cupertinians wanted licenses to be calculated based only on the price of the processor, which is using Ericsson-licensed tech.

Now, seeing as all the parts in an iPhone cost around $200, according to reports, while the company sells the handsets for a minimum of $600 a piece – we could see why Ericsson would not agree to that kind of deal. Instead, it suggested that an independent arbitrator should determine a fair price for the licenses, but Apple responded that it may not agree to the decision, if it doesn't like it.

Apparently, the parties didn't reach an agreement, and Apple refused to renew their contract, claiming that Ericsson is being abusive with its licensing practices. The latter responded in kind, leading to the current situation – 7 new lawsuits and a possibility for an iPhone import block – the Trade Commission is a separate body and can act faster than court, without waiting for its decision.

Well, Apple's had a tough week - just a couple of days ago, it was ordered to pay $532.9 million to another plaintiff in a patent case. This current case with Ericsson doesn't seem to be going anywhere good, too, but fear not – we're quite sure that Cupertinians will pull all possible strings and tricks to not have its handsets pulled off the US market – the iPhones must always flow!


source: Bloomberg via Gizmodo

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78 Comments

1. arch_angel

Posts: 1651; Member since: Feb 20, 2015

lol would be funny if there phone got pulled from US market

13. alouden unregistered

That will never happen. I am not saying it shouldn't. But the last time that was threatened, the government blocked it. God forbid the market were deprived of iPhones....

22. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Apple has already acknowledged it is using the patents via the just-expired licensing agreement. ITC import ban could be around the corner.

86. spin9

Posts: 310; Member since: May 31, 2014

24. arch_angel

Posts: 1651; Member since: Feb 20, 2015

of course it will never happen but a guy can dream lol

34. Kruze

Posts: 1285; Member since: Dec 30, 2014

But blind Apple fanboys can't worship Apple anymore if that happens.

16. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

I think it's funnier that Apple thinks Ericsson is charging too much :P

21. alouden unregistered

That is pretty funny...

52. kanagadeepan

Posts: 1284; Member since: Jan 24, 2012

According to them, they only have the right to charge too much...

68. memeON1

Posts: 34; Member since: Nov 26, 2014

Talk about charging too much huh. =)

31. RajRicardo

Posts: 505; Member since: Feb 28, 2014

Ericsson trying to milk as much money as it can.

32. tedkord

Posts: 17512; Member since: Jun 17, 2009

Apple should sue them for copying that.

44. Finalflash

Posts: 4063; Member since: Jul 23, 2013

I think that will be Apple's countersuit in this claim, as is tradition.

66. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

Apple already has patient for the process of making good (not great) product cheap, heavily advertise it, and sell it at a premium price. Then they'll make sure suing everyone is doing the same.

39. nctx77

Posts: 2540; Member since: Sep 03, 2013

Dude, it would be cheaper just to buy them lol! When you have 180 billion, expect the haters to want some of that!

55. tedkord

Posts: 17512; Member since: Jun 17, 2009

That's the Apple mindset - steal it. If got get caught fight it. If you're losing, buy it. And unleash the hell on earth if anyone releases anything even remotely similar to anything you have.

54. xtremesv

Posts: 299; Member since: Oct 21, 2011

Impossible, Obama would veto the ban immediately.

80. engineer-1701d unregistered

that would be hilarious also known as karma but we all know President Obama is a fanboy and will not stop apple from selling just like the last block from samsung to block samsung allows Apple

85. mmmanuuu

Posts: 403; Member since: Nov 05, 2013

What if the judge asks the apple to reduce its cost by taking only a marginal profit so that ericsson can be paid as they wanted !

2. wando77

Posts: 1169; Member since: Aug 23, 2012

Cutting edge apple innovations? Hahaha The screen isn't cutting edge and isn't made by apple. The design is a copy of the htc one and as for the operating system. .... notification centre, toggles, mapping. ... All copied from android or nokia. And Apple are so big on people not copying them but there would be NO IPHONE had they not copied the idea from Nokia who put a bigger than normal screen that could browse the net, navigate and take good pics as well as play movies and music (talking about the n95)

15. MrHate

Posts: 318; Member since: Feb 09, 2015

"And Apple are so big on people not copying them but there would be NO IPHONE had they not copied the idea from Nokia..." after reading this part I lost my faith in you.. So stupid.

27. wando77

Posts: 1169; Member since: Aug 23, 2012

Read the text after the word nokia and then go do some research. If apple hadn't seen phones like the Nokia n95 with all its features they would never have thought to make the iphone. The ONLY thing they improved over the n95 was having a capacative touch screen. The camera, sat nav, video playback etc were way more advanced on the n95 than the original iphone with its 2mp camera, no flash, no sat nav, 2g only and no bluetooth

38. MrHate

Posts: 318; Member since: Feb 09, 2015

You can use your whole argument for almost everything else..cars, airplanes etc. everything is building upon each other. If there wasn't the iPhone the smartphone nowadays wouldn't be so popular and would be a few years behind in development. When it was so easy what Apple did, why couldn't it do any other company to first? Yes you can say that they are taking features from Android. That's a fact. But so else does Android and every other company out there.

56. tedkord

Posts: 17512; Member since: Jun 17, 2009

You've made his point for him. Everything is built on the work of others. That is why Apples litigious ways are so disgusting, they sue others for shipping the exact same thing they do regularly. I'd have zero problem with Apple if it weren't for that hypocritical behavior.

67. j2001m

Posts: 3061; Member since: Apr 28, 2014

Any company looked at doing what Apple did but it was the cost of doing it, I.e. Look at the cost of the Apple iphome came out, no other company will have got sales, but there was always going to be apples users that will buy anything they sell, they then got something the Google came up with called apps and then it was game over due to there being only one phone type and all the apps worked, just some very good luck

76. memeON1

Posts: 34; Member since: Nov 26, 2014

Not really, Nokia was doing fine then.

33. tedkord

Posts: 17512; Member since: Jun 17, 2009

Truth damages your faith? That is often the case in religion.

42. MrHate

Posts: 318; Member since: Feb 09, 2015

Not truth. His blindness.

57. tedkord

Posts: 17512; Member since: Jun 17, 2009

It sounds more like you've got religion induced blindness.

59. medicci37

Posts: 1361; Member since: Nov 19, 2011

You know if you actually read the article MrHate you'll notice that all Ericsson wanted was a independent arbitrator to decide. Whereas Apple wants to be the arbitrator. Would be stupid of Ericsson to agree to those terms

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