Ericsson and Samsung sign global patent license agreement

Karachi: A multi-year agreement has been signed between the two firms on worldwide patent licenses, including patents for all cellular technology, between Ericsson (NASDAQ: ERIC) and Samsung. The cross-license agreement covers the sales from 1 January 2021 of network infrastructure and handsets.

Ericsson and Samsung agreed on cooperation technology initiatives to promote open standards for mobile industries and to provide valuation solutions to businesses and consumers.

This agreement ends both company complaints filed even before the United States International Trade Commission (USITC) and ongoing lawsuits in multiple countries, as well as confirming the worth of both companies' strong patent portfolios. Confidential and non-disclosed of the agreement details.

This continues to be affected by Ericsson's IPR Licensing revenues, mostly pending renewal of licence agreements expired, the geopolitical influence in the market for phones, the technological change between 4G and 5G and possible future financial effects. SEK 2.0 b to 2.5 b is expected for the 2nd quarter of 2021, which will include the new sales agreement from 1 January 2021.

"We are delighted to reach a mutually beneficial deal with Samsung, says Christina Petersson, Chief Intellectual Property Officer of Ericsson. It validates the value of our patent portfolio and further shows the commitment of Ericsson to the principles of FRAND."

Ericsson's major investments have been in R&D and the development of international mobile standards over several decades, and he commits himself to licenses the standard-essential patents (FRAND) to consumers and businesses across the world on just, reasonable and non-discriminatory terms. This system enables the access of inventors like Ericsson to technology and intellectual property and also rewards inventors for their important early investments in research and development for each mobile generation.

Approximately SEK 40 b annual R&D investment reinforces Ericsson's value of the IP portfolio to over 57,000 patents awarded. The firm is confident that its IPR revenue growth in the long term will maximise the value of the total patent portfolio, with its leading position in 5G worldwide.

Post a Comment

Please do not enter any spam link in the comment box.