Ericsson, Samsung Reach Patent Agreement

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 [e-mail]

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