Ericsson Profits to Get $511 Million Boost from Samsung Patent Settlement
Published on: 27th Jan 2014
Note -- this news article is more than a year old.
On the same day that it announced its cross licensing agreement with Google, Samsung has also secured a settlement with Ericsson.
Samsung will also make an initial payment and ongoing royalties to Ericsson.
Ericsson said that the initial payment in the agreement will impact its profit in Q4 2013 by SEK 3.3 billion (USD512 million).
In their statement, the companies said that the cross license agreement covers patents relating to GSM, UMTS, and LTE standards for both networks and handsets.
This agreement also ends complaints made by both companies against each other before the International Trade Commission (ITC) as well as the lawsuits before the U.S. District Court for the Eastern District of Texas.
"We are pleased that we could reach a mutually fair and reasonable agreement with Samsung. We always viewed litigation as a last resort," said Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson. "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."
The other details of the agreement are confidential and will not be disclosed.