Ericsson has filed a lawsuit against Samsung in the United States, accusing the South Korean giant of not adhering to its contractual commitments for various licensing patent agreements. It claims that Samsung is failing to adhere to fair, reasonable, and non-discriminatory (FRAND) terms and conditions.

The company is seeking to attain a declaration that it has complied with its FRAND commitment and that Samsung has not. Ericsson claims that Samsung’s FRAND commitment is a contract between Samsung and European Telecommunications Standards Institute and it has the right to enforce this commitment as a third-party beneficiary.

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For those who are unaware, several most common technological standards are protected by patents held by companies, including Wi-Fi and Bluetooth. Such technologies being essential, the patent holders are obliged to grant licenses on FRAND terms.

In this instance, the FRAND commitment is related to various global cross-licenses that cover patents from both the companies related to 2G, 3G, 4G, and 5G cellular standards. These standards are used in smartphones, other mobile devices, and cellular infrastructure.

With several of the licensing deals set to expire next year and negotiations still ongoing, Ericsson said the payment of IP royalties may be delayed. In such case, Ericsson predicted its operating income could decline by $118-177 million per quarter from 2021 onwards.

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Huawei may be facing a possible UK ban if it fails to pay 4G patent royalties. The ruling was delivered by The High Court of England and Wales for a suit filed by Unwired Planet International.

Unwired had filed a lawsuit against Huawei for infringing on its 4G patents. The court’s ruling says that Huawei must pay licensing fees to Unwired or face a ban of sales of its 4G phones in the UK.

Originally, the patents belonged to Ericsson before they were acquired by Unwired. Huawei had a licensing agreement with the former owner but failed to draw up a new one with Unwired.

The patents are essential to implement established communications  standards, hence the royalties paid must be fair, reasonable, and non-discriminatory (FRAND). So Huawei’s initial offer of 0.034 percent of its revenues on 4G equipment doesn’t meet the FRAND standard neither does Unwired’s request for 1.49 per cent on 4G handsets and 2.29 per cent on Huawei’s 4G equipment.

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The court finally ruled after a lot of haggling that Huawei pays Unwired 0.051 per cent on 4G equipment and 0.052 on 4G phones.

(Source)

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