Apple Inc. AAPL has sued Ericsson (ADR) ERIC over its LTE wireless technology patents, claiming that the patents are “not essential to industry cellular standards and that it is demanding excessive royalties” for using the technology, according to a Reuters report.
Ericsson is accused of demanding royalties calculated as a percentage of an entire smartphone or tablet price. Apple argues that the royalty should be based on the value of the microchip that includes the LTE technology.
"We've always been willing to pay a fair price to secure the rights to standards essential patents covering technology in our products. Unfortunately, we have not been able to agree with Ericsson on a fair rate for their patents so, as a last resort, we are asking the courts for help," said Apple spokeswoman Kristin Huguet.
JP.Morgan also commented on the lawsuits between the two companies.
Apple recently traded at $108.87, down 1.23 percent.
Ericsson recently traded at $11.98, down 0.13 percent.
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