Ericsson Seeks To Block iPhone In U.S. In Latest Patent Dispute

Patent litigation is heating up again. Earlier this week, Apple was hit by a half-billion dollar jury verdict over iTunes. Now, Swedish wireless networks company Ericsson is trying to block the iPhone from being imported into the U.S. through a complaint filed with the International Trade Commission (ITC).

Ericsson apparently wants more money from Apple for basic technologies used in the iPhone and other Apple products. Apple says that Ericsson is not offering reasonable licensing terms for what it characterizes as fundamental wireless technologies (FRAND), as it’s supposed to under international law.

Apple had been paying Ericsson license fees. However, the agreement between the two companies expired, and they’ve been negotiating a renewal — thus far unsuccessfully.

In addition to the ITC action, Ericsson has sued Apple in U.S. courts in Texas, the preferred patent venue for plaintiffs. According to Bloomberg, “the complaints accuse Apple of infringing as many as 41 patents for some of the fundamental ways mobile devices communicate and for related technology such as user interfaces, battery saving and the operating system.”

Apple has also sued Ericsson, accusing the company of “exploitation” and “abusive licensing practices.” Ericsson’s ITC complaint is designed to create pressure and negotiating leverage. It’s unlikely, however, that the ITC will rule in Ericsson’s favor.

Last quarter, Apple announced record earnings of nearly $75 billion. The company sold 74.5 million iPhone units and recorded $51.2 billion in revenue.

About The Author

Greg Sterling

Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog, Screenwerk, about connecting the dots between digital media and real-world consumer behavior. He is also VP of Strategy and Insights for the Local Search Association. Follow him on Twitter or find him at Google+.

(Some images used under license from Shutterstock.com.)