Ericsson and Samsung sign patent agreement2014-03-21 | Comebuy News
Similar as with Google, Samsung has reached agreement on the reciprocal licensing of international patents with Ericsson. It involves rights for GSM, UMTS, and LTE standards related on the network technology, as well as on mobile devices.
With the agreement, Samsung and Ericsson end any legal disputes regarding their patents. This applies to proceedings before the International Trade Commission (ITC), as well as processes that were brought before the U.S. District Court of Eastern Texas.
The agreement includes an initial payment as well as ongoing royalty payments that are payable during the multi-year term of new licensing agreements by Samsung at Ericsson. On the financial details of the agreement, the parties have agreed to silence.
However, Ericsson tells that the agreed initial payment 2013 will lead to an increase in sales of 4.2 billion Swedish Crowns (about 477 million euros) in the fourth quarter. The net income to rise in the same quarter to 3.3 billion Swedish kroner (nearly 375 million euros). Ericsson also expects that the initial payment will affect the operating Cash Flow.
"We are glad that we were able to achieve a mutual agreement on fair and reasonable terms with Samsung. We viewed a lawsuit as a last resort", commented Kasim Alfalahi, Chief intellectual property officer at Ericsson. "Through this agreement we can focus continues to bring new technologies to the global market. In addition she inspires other innovators to share their own ideas."
Samsung has signed a similar deal with Google. It stipulates that both companies mutually set licenses for existing and future patents. The Vereibarung has a term of ten years. Details of payments or property rights covered by the Treaty and technologies were not known.