Apple Taken To Court By Ericsson Over Allegations Of Engaging In Unfair Practices In 5G Patent Royalty Talks

Ericsson AB (NASDAQ: ERIC) on Monday filed a lawsuit against Apple Inc (NASDAQ: AAPL) for engaging in unfair actions, Bloomberg News reported, citing court documents.

What Happened: The suit filed in a federal court in Marshall, Texas, claims Apple avoided paying royalties for the use of the Swedish telecom giant’s 5G telecommunications technology.

The lawsuit says Ericsson’s attempts to negotiate a license with the Cupertino, California-based technology giant have been stonewalled and it is seeking a court ruling to declare its royalty demand is fair and reasonable, as per the report. 

The two companies are contesting how much royalty Apple should pay Ericsson for the 5G connectivity and networking technology.

Ericsson in its complaint alleges Apple has “historically resisted licensing overtures” as part of a global strategy to devalue standard essential patents and reduce its royalty payments, as per the report. 

This is not the first such legal battle between the two companies. Ericsson had in 2015 slapped a lawsuit against the maker of iPhones and iPads for patent infringement.

Price Action: Apple shares closed 2.46% lower at $139.14 a share on Monday.

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