Earlier this week, Ericsson filed a lawsuit against Samsung in the US. The company alleged that the South Korean tech giant has breached contractual commitments and even failed to negotiate over patent licensing and related payments.
According to a FierceWireless report, the telecom giant is accusing Samsung of violating its obligations for essential patent licensing under FRAND (Fair, Reasonable and Non-Discriminatory) terms. Furthermore, Ericsson wants a declaratory ruling that the companny complied with its own licensing commitments. A Samsung spokesperson reached out to FierceWireless via email and stated that, “Once we receive the complaint, we will review it and determine an appropriate response.”
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In an announcement on December 11, Ericsson stated that the royalty payments for its intellectual property could be delayed if the renewal negotiations do not conclude before the current one expires. According to the telecom equipment provider, the delay in royalty payments and potential cost of litigation could have Ericsson see an operating income hit between roughly 118 to 177 million US Dollars starting in the first quarter of next year.
Ericsson filed the complaint against Samsung in the District Court for the Eastern District of Texas. In the complain, the company stated that, ““Without 4G and 5G technology and Ericsson’s inventions incorporated therein, smartphones and other mobile devices would not be able to provide the constant on-the-go access to video, streaming media, and gaming that consumers expect today.” It further added that both parties, “understood that Samsung would owe Ericsson a substantial balancing payment.”
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