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$650 million plus royalties to be paid to Ericsson by Samsung to end patent war

News   •   Jan 30, 2014 09:49 GMT

Ericsson and Samsung are currently embroiled in a patent war. To end the patent war, the Korean tech giant will pay Ericsson $650 million plus royalties. Although we know how much Samsung will be paying Ericsson, it was not mentioned how much in royalties and the number of years Samsung will continue to pay. Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson, said that this normally takes four to seven years.

According to Reuters, “Samsung Electronics Co will pay Ericsson $650 million along with years of royalties to end a technology license spat, the Swedish company said on Monday.

“The world's No. 1 mobile network equipment maker sued Samsung in 2012 on the grounds that the Korean firm had infringed patents involving technology for clearer voice transmission, touchscreen functions and network efficiency.”

Reuters adds, “The Korean firm signed a licensing deal with Ericsson in 2001 covering handset and network patents and renewed that deal in 2007.

“However, the two could not agree terms in 2011 when the deal ran out, with Samsung accusing Ericsson of demanding prohibitively higher royalty rates to renew the same patent portfolio.”

Alfalahi said, “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.”

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