Ericsson and Samsung today reached an agreement to end a legal dispute on global patent licenses related to cellular technologies.
The multi-year agreement was reached just five months after Ericsson slapped Samsung with a patent lawsuit wherein it accused the South Korea-based company of violating contractual commitments to negotiate on license patents on “fair, reasonable, and non-discriminatory (FRAND) terms and conditions.”
The settlement covers ongoing lawsuits in multiple countries and includes a cross-license agreement covering sales of network infrastructure and handsets as of January 1, 2021, according to Ericsson. Further details will remain confidential, the Swedish company said.
“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,” Christina Petersson, Ericsson’s chief intellectual property officer, said in a statement.
The companies resolved a similar patent dispute after a years-long legal battle in 2012. Ericsson’s closest competitor Nokia also reached a patent license agreement with Samsung last month.
Both deals call for Samsung to pay royalties to its larger competitors in the network equipment space. The resolutions also arrive as Samsung makes a concerted effort to bolster its position in the radio access network market.
The company has earned some sizable 5G RAN deals with mobile network operators outside of its traditional regions of strength during the last year. Samsung landed a $6.64 billion deal with Verizon to supply 5G RAN equipment to the U.S. operator through 2025. The company won that contract after Verizon kicked Nokia to the curb and awarded Samsung roughly half of its RAN spending.
Samsung also last month snagged a 5G RAN contract with NTT DoCoMo, Japan’s largest mobile network operator, in a deal widely viewed as a strengthening of its position in the highly competitive Japanese market.
Ericsson said its patent license agreement with Samsung will positively contribute to its intellectual property licensing revenues in the current quarter and going forward. The Swedish company claims a patent portfolio of more than 57,000 granted patents, an asset it is determined to derive more value from as it increases research and development activities.
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