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Samsung paying Ericsson to license mobile patents and end disputes

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Samsung (STOCK)
Samsung (STOCK)

Samsung and Ericsson have reached a deal to end their ongoing patent disputes. Under the agreement, Samsung will pay Ericsson ongoing royalty costs in addition to an initial payment to begin licensing its patents and end all of their current patent-related legal disputes. Though the exact payment was not disclosed, Ericsson says that its Q4 2013 sales will increase by SEK 4.2 billion (around $651 million) as a result of the transaction. In return, the agreement gives Samsung access to a number of Ericsson patents covering LTE, GSM, and UMTS standards related to both networking and devices.

Samsung and Ericsson spent years trying to strike a deal

Lawsuits brought by both parties will end as a result of the deal. Samsung and Ericsson have been in patent disputes for some time now, with Reuters reporting in 2012 that Ericsson was initiating a lawsuit after two years of failed licensing attempts. But lately, Samsung appears to be more willing to strike licensing deals. Just yesterday, Samsung announced that it and Google had established a broad patent licensing agreement, and last November, Samsung extended a patent licensing agreement with Nokia for five years.

Patent licensing has become a legal battlefield in the tech industry lately, with Samsung the star in one of the biggest conflicts. After its major loss to Apple in a 2012 patent suit, it's possible that Samsung is on a mission to stay out of the spotlight going forward. While Samsung may be the one paying in its agreement with Ericsson, it's certainly good news for both companies: Ericsson is touting its commitment to licensing patents on FRAND terms, while Samsung ends another series of lawsuits and expands what patents it has access to.