Ericsson and Samsung end patent related legal disputes through cross-license agreement

Ericsson and Samsung end patent related legal disputes through cross-license agreement

  • Agreement includes global patent cross license of cellular technologies, including 5G
  • Settlement ends all ongoing patent related legal disputes between the parties
  • In the second quarter 2021, IPR licensing revenues are expected to be SEK 2.0 b. to 2.5 b.

(PRESS RELEASE) STOCKHOLM, 7-May-2021 — /EuropaWire/ — Ericsson (NASDAQ: ERIC) announces that it has reached a multi-year agreement with Samsung relating to global patent licenses between the two companies, including patents relating to all cellular technologies. The cross-license agreement covers sales of network infrastructure and handsets from January 1, 2021.

Furthermore, Ericsson and Samsung have agreed on technology cooperation projects to advance the mobile industry in open standardization and create valuable solutions for consumers and enterprises.

This settlement ends complaints filed by both companies before the United States International Trade Commission (USITC) as well as the ongoing lawsuits in several countries and confirms the value of the strong patent portfolios of both companies. The details of the agreement are confidential and will not be disclosed.

Ericsson’s IPR licensing revenues continue to be affected by several factors, mainly expired patent license agreements pending renewal, geopolitical impact on the handset market, technology shift from 4G to 5G, and possible currency effects going forward. In the second quarter 2021, IPR licensing revenues, including the new agreement covering sales from January 1, 2021, are expected to be SEK 2.0 b to 2.5 b.

Christina Petersson, Chief Intellectual Property Officer at Ericsson says: “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.”

Over several decades, Ericsson has made significant investments in R&D and in developing global mobile standards and is committed to licensing its standard-essential patents on fair, reasonable and non-discriminatory (FRAND) terms for the benefit of consumers and enterprises everywhere. The FRAND system allows access to technology and intellectual property, developed by inventors like Ericsson, and also rewards those inventors for their major up-front investment in R&D in each mobile generation.

The value of Ericsson’s IP portfolio extends to more than 57,000 granted patents and is strengthened by annual investment in R&D of approx. SEK 40 b. With a leading global position in 5G, the company is confident of growing its IPR revenues long term, thereby further maximizing the value of the overall patent portfolio.

NOTES TO EDITORS:

Media contacts:

Peter Nyquist, Head of Investor Relations
Phone: +46 705 75 29 06
E-mail: peter.nyquist@ericsson.com

Investors

Stefan Jelvin, Director, Investor Relations
Phone: +46 709 86 02 27
E-mail: stefan.jelvin@ericsson.com

Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail: lena.haggblom@ericsson.com

Media

Peter Olofsson, Head of External Relations Business & Technology
Phone: +46 702 67 34 45
E-mail: media.relations@ericsson.com

Corporate Communications

Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com

SOURCE: Telefonaktiebolaget LM Ericsson

MORE ON ERICSSON, PATENTS, ETC.:

EDITOR'S PICK:

Comments are closed.