Ericsson Transfers Nearly 2,200 Patents to Unwired Planet in Revenue Share Deal
Published on: 11th Jan 2013
Note -- this news article is more than a year old.
Ericsson is transferring a block of nearly 2,200 patents to the USA based patents holding company, Unwired Planet (formerly the mobile browser developer, Openwave Systems) in exchange for a share of its ongoing revenues.
The Ericsson patents consists of 825 patent families and includes 1,922 issued patents and 263 patent applications covering technology utilized in telecommunications infrastructure including signal processing, network protocols, radio resource management, voice/text applications, mobility management, software, hardware and antennas. Of the 1,922 issued patents, 753 are United States patents.
Ericsson will also transfer a further 500 patents over the next five years to Unwired Planet.
Unwired Planet will make quarterly payments to Ericsson of 20% of its gross revenues up to USD100 million, then 50% of revenues up to USD500 million and 70% of its revenues above that amount.
Unwired Planet also accepted an obligation to behave in a manner that is fair, reasonable and non-discriminatory ("FRAND") when generating licensing revenues from the patents. The company said that it believes that such an approach will maximize value for its shareholders over the long term, but warned that the arrangements may take a longer period of time to achieve and may result in smaller upfront payments, as compared to lump sum perpetual licensing.