Ericsson and Apple have signed a patent license deal

Ericsson and Apple reach patent agreement

Ericsson and Apple have agreed to patent terms over technology that allows smartphones and tablets to connect to mobile networks. News of the deal sent shares at Ericsson up by as much as 8% on Monday.

Apple and Ericsson were engaged in a  year-long dispute over the mobile technology.

Ericsson had said in its filing to a U.S. district court in January that Apple’s license to use the technology developed by the Swedish firm had expired, and that two years of negotiations had not led to a new deal.

Ericsson on Monday estimated overall revenue from intellectual property rights in 2015 would hit 13 to 14 billion crowns ($1.52-$1.64 billion). That’s up from 9.9 billion in 2014.

Ericsson has not specified exactly how much the Apple deal would contribute to sales and earnings.  UBS analysts said in a research note that the deal meant a catch-up payment of 3.6 billion crowns for 2015, including a one-off sum of 0.5 billion covering items such as legal fees.

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Ericsson’s operating profit is expected to increase by 13% in 2015 and 10% in 2016, adding 775 million crowns per quarter in licensing fees.

Written by Franklin Simmons

Franklin Simmons

Franklin Simmons is BusinessPundit's Tech Editor. His life is consumed with a love of augmented reality, mobility, and emerging technology. He extensively covers all areas of technology, including the computing, automotive, and healthcare sectors.