Ericsson ends patent licensing dispute with Samsung

Swedish telecoms gear maker Ericsson and Korean tech giant Samsung has inked multi-year global patent licenses that includes patents related to all cellular technologies, including fifth-generation or 5G technology.

With this agreement, the two companies have ended a patent licensing dispute that hit Ericsson’s first-quarter revenue.

Additionally, the agreement ends complaints filed by both companies before the United States International Trade Commission (USITC) as well as the ongoing lawsuits in several countries, the telecom gear maker said in an official statement.

The cross-license agreement covers sales of network infrastructure and handsets from January 1, 2021, it added.

“We are delighted to sign a mutually beneficial agreement with Samsung. This important deal confirms the value of our patent portfolio and further illustrates Ericsson’s commitment to FRAND principles,” said Christina Petersson, Chief Intellectual Property Officer at Ericsson.

The companies have not divulged any details of the agreement, citing them to be “confidential”.

The Swedish company expects its second-quarter licensing revenues to be between 2 billion Swedish crowns to 2.5 billion Swedish crowns.

Ericsson, however, said its IPR licensing revenues continue to be affected by several factors, such as expired patent license agreements pending renewal, geopolitical impact on the handset market, technology shift from 4G to 5G, and possible currency effects going forward.

Ericsson and Samsung further said they will also collaborate on technology projects to promote open standardization in the mobile industry while creating solutions for consumers and enterprises.