According to sources, Apple Inc. and Ericsson have filed lawsuits against each other due to a licensing dispute. Apple filed a lawsuit in California claiming that Ericsson is charging excessive fees for use of its patents and that the patents themselves may not be essential in devices that Apple makes. Ericsson filed a lawsuit in Texas district court asking for a determination as to whether or not its fees are fair.
Although the two companies have been negotiating a new licensing deal for two years, there has not been much progress. Apple says that Ericsson wants the company to pay royalties based on the total value of each device sold. Currently, Apple uses basic technology developed and patented by Ericsson in its popular iPhone. However, Apple wants to pay royalties on a smaller base.