STOCKHOLM-- Ericsson AB said Monday it has reached an agreement
with Samsung Electronics Co Ltd on global patent licenses between
the two companies, ending a series of complaints made by both
companies against each other.
Ericsson said the financial details of the deal are confidential
but said the company's fourth quarter sales will be boosted by 4.2
billion Swedish kronor ($652.2 million) and net profit by SEK3.3
billion.
The agreement includes an initial payment and ongoing royalty
payments from Samsung to Ericsson for the term of the new multiyear
license agreement.
The license agreement covers patents relating to Global System
for Mobile communications (GSM), Universal Mobile
Telecommunications System (UMTS), and Long Term Evolution (LTE)
mobile network technology standards for both networks and
handsets.
"This agreement allows us to continue to focus on bringing new
technology to the global market and provides an incentive to other
innovators to share their own ideas," said Kasim Alfalahi,
Ericsson's chief intellectual property officer.
Write to Dominic Chopping at dominic.chopping@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires