Recently, Ericsson announced that it had reached a multi-year agreement with Samsung on global patent licensing. Therefore, both of these firms had decided to end the legal battles, which had crashed Ericsson’s first-quarter revenue.
According to a statement shared by Ericsson, this cross-licensing agreement covers network infrastructure and mobile phone sales starting January 1, 2021. The company expects that patent licensing revenue in the second quarter will be between SEK 2 billion (US$237.3 million) and SEK 2.5 billion.
Following this agreement, Samsung and Ericsson will withdraw complaints filed in the U.S. International Trade Commission and ongoing litigation in multiple countries. Furthermore, both firms refused to disclose the terms of the agreement on the grounds of confidentiality.
Back in Decembeer 2020, Ericsson sued Samsung in the United States, demanding payment of royalties. It’s worth mentioning that, the patent licensing revenue of Ericsson fell to 800 million Swedish krona this year from 2.5 billion Swedish krona compared to the same of period last year.
Ericsson said that its patent revenue continues to be affected by multiple factors, such as expired license agreements waiting to be renewed, geopolitical impacts on the smartphone market, the transition from 4G to 5G, and possible exchange rate effects in the future.