Samsung and Ericsson resolve patent crises through a cross-licensing agreement


Swedish telecommunications equipment company Ericsson has entered into a multi-year agreement with Samsung for global patent licenses. Ericsson did not say how long the agreement will last, but it includes patents for all cellular technologies. Not only did the agreement end patent litigation in several other countries, it allowed Ericsson to raise patent license revenue for the second quarter between SEK 2 billion ($ 237 million) and SEK 2.5 billion ($ 301 million).

The cross-licensing agreement covers mobile phones and network infrastructure from 1.1.2020. The terms of the transaction include a confidentiality clause. Ericsson holds more than 57,000 patents in its intellectual property portfolio.

The disagreement with Samsung may have had a negative impact on Ericsson’s first-quarter patent license revenue, which fell from SEK 2.5 billion in the first quarter of 2020 to SEK 800 million in the first quarter of this year. These royalties are important to Ericsson and account for a third of the company’s operating profit. Ericsson says its quarterly patent revenues will affect the expiration of renewed contracts, the impact of geopolitical measures on mobile phone sales, currency exchanges and the transition of the market from 4G to 5G.

Although an agreement had been reached with Samsung, Ericsson is still in litigation with the Dutch company KPN, which in April filed a patent infringement lawsuit against Ericsson in the Texas District Court. The latter invests SEK 40 billion ($ 1.9 billion) annually in research. Another Swedish network star, Nokia, resolved a patent issue with Nokia earlier this year.


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