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Ericsson signs new licensing agreement with Samsung
2014-01-27 08:37:00| Telecompaper Headlines
(Telecompaper) Samsung has reached a new agreement to license Ericsson technology, putting an end to the litigation started between the companies in 2012. The cross-license agreement covers patents relating to GSM, UMTS and LTE standards for both networks and handsets. This agreement ends complaints made by the companies against each other before the International Trade Commission as well as the lawsuits before the US District Court for the Eastern District of Texas. Ericsson initiated the suits after it failed to reach a new licensing agreement after two years of negotiations with Samsung, and Samsung subsequently coutner-sued. The new licence agreement includes an initial payment and ongoing royalty payments from Samsung to Ericsson. The initial payment will add SEK 4.2 billion to Ericsson sales and SEK 3.3 billion to net profit for the fourth quarter of 2013. Ericsson also expects the initial payment to impact its operating cash flow in the beginning of 2014. Further details of the agreement were not released. This is Samsung's second major licensing deal in a week, after Nokia earlier announced a new five-year arrangement with the company.
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Category:Telecommunications