NEW DELHI: Swedish Ericsson and Korean technology giant Samsung have inked multi-year global patent licences including patents relating to all cellular technologies, including fifth- generation or fifth-generation technology.
The two companies concluded a patent licencing dispute with this agreement, which affected Samsung– Ericsson’s first-quarter revenue.
The Agreement also ends complaints by both companies, as well as on-going lawsuits in several countries before the United States International Trade Commission (USITC), the telecom gearmaker stated in an official statement.
The Cross-License Agreement covers network infrastructure sales and telephone communications from 1 January 2021.
“We are pleased to sign with Samsung a mutually beneficial agreement. That major deal confirms the value of our patent portfolio and further illustrates the commitment of Ericsson to the principles of FRAND,” said Christina Petersson, Ericsson’s Chief Intellectual Property Officer.
The companies did not disclose any of the Samsung agreement’s details citing them as “confidential.”
The Swedish firm expects its licencing revenue for the second quarter to reach between 2 billion Swedish crownsSamsung and 2.5 billion Swedish crowns.
However, Ericsson said his IPR licencing revenues are still affected by many factors, including expired patent licencing contracts pending renewal, geopolitical impacts on the mobile phone market, technology shift from Samsung 4G to 5G, and potential currency effects.
Ericsson and Samsung also said they would work together on technology projects to promote open mobile industry standardization, while creating solutions for consumers and companies.