“By refusing Ericsson’s fair and reasonable licensing offer for patented technology used in Apple smartphones and tablets, Apple harms the entire market and reduces the incentive to share innovation,” the company said in a statement.Ericsson has filed two complaints with the U.S. International Trade Commission in an effort to secure an exclusion order against Apple, which could block the iPhone, iPad and other products involved from being sold in the United States. The company has also filed seven complaints with the U.S. District Court for the Eastern District of Texas as part of the negotiations. Apple's previous licensing deal with Ericsson expired in mid-January.
Apple originally filed suit against Ericsson on January 12, arguing that it was demanding excessive royalties for patents not essential to LTE standards. Ericsson countersued in a Texas courtroom just hours later, seeking an estimated $250 million to $750 million in royalties per year for Apple to continue licensing its patented wireless technologies. Ericsson is the world's largest provider of mobile network equipment and holds over 35,000 patents related to 2G, 3G and 4G wireless technologies.
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The U.S. government has accused China of violating trade agreements by imposing “intrusive” and “protectionist” rules that would prevent companies like Apple selling technology to Chinese banks.
The regulations, announced by China last month, would have required Western companies to turn over source code for products sold to banks, supposedly to permit security checks to be made–a demand to which Apple and other tech companies could never agree.
The WSJ reports that U.S. Trade Representative Michael Froman said today that the rules were unacceptable.
“China’s new regulations on the use of information and communications technology in the banking industry go directly against a series of China’s bilateral and multilateral trade commitments. For example, the rules would require technology transfer and use of domestic Chinese intellectual property as a precondition for market access—both of which China has committed not to do,” said Froman.
The rules aren’t about security. They are about protectionism and favoring Chinese companies,” he said. “The administration is aggressively working to have China walk back from these troubling regulations.”
Apple’s aggressive expansion plans in China have meant the company has sometimes had to tread a careful line, such as agreeing to allow China’s State Internet Information Office to carry out security audits of Apple products sold in the country. It has, though, always refused to allow backdoor access to its products and stated it will never compromise the encryption used by its products and services.
Filed under: AAPL Company Tagged: AAPL, Apple China, Apple Inc, china, Federal government of the United States
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Ericsson, an early pioneer in cellphone technology, has upped the ante in a patent dispute with Apple by asking the U.S. International Trade Commission to block the import of iPhones into the country.
Ericsson owns patents to a number of fundamental technologies used in all cellphones, including LTE, and Apple had been paying royalties for these up until mid-January when the license fell due for renewal, reports Bloomberg …
Apple had been paying royalties to Stockholm-based Ericsson before a license expired in mid-January. When talks over renewal failed, the companies sued each other, seeking court rulings on whether Ericsson’s royalty demands on fundamental technology were fair and reasonable.
The royalty payment is on a per-phone basis, with Re/code reporting that the total sum Ericsson wanted would range from $250-750M per year. Apple took Ericsson to court, arguing that the company is not infringing the patents and that the royalty should be based on the relevant component rather than a percentage of the handset cost. Ericsson countersued, asking a court to decide the appropriate royalty.
It total, seven lawsuits have also been filed as part of the dispute, two of which are likely to be put on hold until the outcome of the ITC complaint.
The ITC did previously apply a limited ban to the iPhone 3GS, iPhone 4 and 3G iPads over a patent claim by Samsung, but this was overturned by President Obama. Samsung was unsuccessful in requesting a similar veto on its own ITC ban.
Filed under: AAPL Company, iOS Devices Tagged: Apple Inc, Ericsson, International Trade Commission, iPhone, ITC, Mobile phone, Patent, patent dispute, patent lawsuit, Samsung
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