Ericsson settles patent dispute with Apple

Mobile technology company Ericsson announced Monday it settled a patent dispute with Apple, requiring the tech giant to pay royalties tied to technology used in its iPhones and iPads.

Both companies agreed to a global patent license deal related to cellular networks, said Ericsson in a statement. As part of the deal, Apple will make an initial payment to Ericsson, then ongoing royalty payments during the next seven years.

Apple and Ericsson will also work together on several mobile tech initiatives, including the development of 5G networks and optimizing video traffic.

"We are pleased with this new agreement with Apple, which clears the way for both companies to continue to focus on bringing new technology to the global market, and opens up for more joint business opportunities in the future," said Kasim Alfalahi, Ericsson's Chief Intellectual Property Officer, in a statement.

Shares of Ericsson were up more than 4% in midday trading.

Follow Brett Molina on Twitter: @brettmolina23.