Ericsson and Samsung end dispute with worldwide deal


by CBR Staff Writer| 28 January 2014

Samsung will pay $650m to Ericsson.

Swedish communication technology company Ericsson has signed a patent licensing agreement with Samsung Electronics ending the technology licensing fight between the two companies since 2012.

Under the out of court deal, Samsung will pay SEK4.2bn ($650m) to Ericsson along with years of royalties for patents of technologies like GSM, UMTS, as well as LTE standards for both networks and handsets.

The agreement, which allows cross licensing of cellular technologies, follows a lawsuit filed by Ericsson against Samsung for violating patents involving technology for clearer voice transmission, touchscreen functions and network efficiency.

With the agreement, both the companies intend to ends complaints made against each other before the International Trade Commission (ITC) as well as the lawsuits before the US District Court for the Eastern District of Texas.

Ericsson chief intellectual property officer Kasim Alfalahi said the company is pleased that it could reach a mutually fair and reasonable agreement with Samsung.

"This agreement allows us to continue to focus on bringing new technology to the global market and provides an incentive to other innovators to share their own ideas," Alfalahi added.

The companies have not disclosed further details of the settlement, however Ericsson said the deal would impact the sales and net income in fourth quarter of 2013 by SEK4.2bn and SEK3.3bn respectively.

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