Stefan Mileschin

Reaches agreement on global patent licences

Ericsson has reached a multi-year agreement on global patent licences with Samsung ending a dispute that hit the Swedish telecom equipment maker's first-quarter revenue.

Ericsson expects second-quarter patent licensing revenue to be between 2 billion Swedish crowns ($237.30 million) to 2.5 billion crowns.

The cross-license agreement covers sales of network infrastructure and handsets from 1 January, 2021, it said in a statement.

The settlement would end complaints filed by both companies before the U.S. International Trade Commission as well as the ongoing lawsuits in several countries.

In the first quarter, Ericsson's patent licensing revenue fell to 0.8 billion crowns from 2.5 billion crowns a year earlier. In December, Ericsson filed a lawsuit against Samsung in the United States over royalty payments.

The company said its patent revenues continue to be affected by factors such as expired license agreements pending renewal, geopolitical impact on the handset market, a technology shift from 4G to 5G, and currency effects.

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