STOCKHOLM, May 7, 2021 /PRNewswire/ -- Ericsson (NASDAQ:
ERIC) and Samsung have reached a multi-year agreement on global
patent licenses between the two companies, including patents
relating to all cellular technologies. The cross-license agreement
covers sales of network infrastructure and handsets from
January 1, 2021.
Furthermore, Ericsson and Samsung have agreed on technology
cooperation projects to advance the mobile industry in open
standardization and create valuable solutions for consumers and
This settlement ends complaints filed by both companies before
the United States International Trade Commission (USITC) as well as
the ongoing lawsuits in several countries and confirms the value of
the strong patent portfolios of both companies. The details of the
agreement are confidential and will not be disclosed.
Ericsson's IPR licensing revenues continue to be affected by
several factors, mainly expired patent license agreements pending
renewal, geopolitical impact on the handset market, technology
shift from 4G to 5G, and possible currency effects going forward.
In the second quarter 2021, IPR licensing revenues, including the
new agreement covering sales from January 1,
2021, are expected to be SEK 2.0
b to 2.5 b.
Christina Petersson, Chief
Intellectual Property Officer at Ericsson says: "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."
Over several decades, Ericsson has made significant investments
in R&D and in developing global mobile standards and is
committed to licensing its standard-essential patents on fair,
reasonable and non-discriminatory (FRAND) terms for the benefit of
consumers and enterprises everywhere. The FRAND system allows
access to technology and intellectual property, developed by
inventors like Ericsson, and also rewards those inventors for their
major up-front investment in R&D in each mobile generation.
The value of Ericsson's IP portfolio extends to more than 57,000
granted patents and is strengthened by annual investment in R&D
of approx. SEK 40 b. With a leading
global position in 5G, the company is confident of growing its IPR
revenues long term, thereby further maximizing the value of the
overall patent portfolio.
NOTES TO EDITORS:
Subscribe to Ericsson press releases here.
Subscribe to the Ericsson Blog here.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Nyquist, Head of Investor
Phone: +46 705 75 29 06
Stefan Jelvin, Director, Investor Relations
Phone: +46 709 86 02 27
Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
Peter Olofsson, Head of External
Relations Business & Technology
Phone: +46 702 67 34 45
Phone: +46 10 719 69 92
Ericsson enables communications service providers to capture the
full value of connectivity. The company's portfolio spans Networks,
Digital Services, Managed Services, and Emerging Business and is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's investments in innovation have
delivered the benefits of telephony and mobile broadband to
billions of people around the world. The Ericsson stock is listed
on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
This release includes forward-looking statements, including
statements reflecting management's current views relating to the
growth of the market, future market conditions, future events,
financial condition, and expected operational and financial
performance, including, in particular the following:
- Our goals, strategies, planning assumptions and operational or
financial performance expectations
- Industry trends, future characteristics and development of the
markets in which we operate
- Our future liquidity, capital resources, capital expenditures,
cost savings and profitability
- The expected demand for our existing and new products and
services as well as plans to launch new products and services
including research and development expenditures
- The ability to deliver on future plans and to realize
potential for future growth
- The expected operational or financial performance of strategic
cooperation activities and joint ventures
- The time until acquired entities and businesses will be
integrated and accretive to income
- Technology and industry trends including the regulatory and
standardization environment in which we operate, competition and
our customer structure.
The words "believe," "expect," "foresee," "anticipate,"
"assume," "intend," "likely," "projects," "may," "could," "plan,"
"estimate," "forecast," "will," "should," "would," "predict,"
"aim," "ambition," "seek," "potential," "target," "might,"
"continue," or, in each case, their negative or variations, and
similar words or expressions are used to identify forward-looking
statements. Any statement that refers to expectations, projections
or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking
We caution investors that these statements are subject to risks
and uncertainties many of which are difficult to predict and
generally beyond our control that could cause actual results to
differ materially from those expressed in, or implied or projected
by, the forward-looking information and statements.
Important factors that could affect whether and to what extent
any of our forward-looking statements materialize include, but are
not limited to, the factors described in the section "Risk Factors"
in the latest interim report, and in "Risk Factors" in the Annual
These forward-looking statements also represent our estimates
and assumptions only as of the date that they were made. We
expressly disclaim a duty to provide updates to these
forward-looking statements, and the estimates and assumptions
associated with them, after the date of this release, to reflect
events or changes in circumstances or changes in expectations or
the occurrence of anticipated events, whether as a result of new
information, future events or otherwise, except as required by
applicable law or stock exchange regulations.
This information is information that Telefonaktiebolaget LM
Ericsson is obliged to make public pursuant to the EU Market Abuse
Regulation. The information was submitted for publication, through
the agency of the contact person set out above at 08:00 am CEST on May 7,
This information was brought to you by Cision
The following files are available for download:
Ericsson and Samsung
sign global patent license agreement