Ericsson and Samsung signed a global patent license agreement

The Swedish telecommunications equipment manufacturer Ericsson issued an announcement that it has reached a multi-year agreement with Samsung Electronics on global patent licensing, including all patents related to cellular technology. The cross-licensing agreement covers sales of network infrastructure and handsets from January 1, 2021. The details of the agreement are confidential and will not be disclosed.

Ericsson stated that the global patent license agreement has ended all ongoing patent-related legal disputes between the two parties, and at the same time it has reached an agreement with Samsung on a technical cooperation project to promote the open standardization of the mobile industry and create valuable solutions for consumers and enterprises.

The patent litigation dispute between Ericsson and Samsung originated from the expiration of the patent license agreement between the two parties last year. Samsung did not approve of Ericsson’s patent license plan, so the two companies initiated patent litigation in the United States, China, and multiple countries and regions.

Christina Petersson, Chief Intellectual Property Officer of Ericsson, said that “We are delighted to sign a mutually beneficial agreement with Samsung. This important deal confirms the value of our patent portfolio and further illustrates Ericsson’s commitment to FRAND principles.”

In the announcement, Ericsson stated that its patent revenue has been affected by multiple factors, such as expired license agreements waiting to be renewed, the geopolitical influence on the mobile phone market, the transition from 4G networks to 5G networks, and possible future exchange rate issues. Ericsson expects that after the settlement, its patent licensing revenue in the second quarter will be between SEK 2 billion (approximately $237 million) and SEK 2.5 billion(approximately $296 million).