Xiaomi and InterDigital have recently struck a global licensing deal. The move from the brand enables it to resolve legal disputes between the two companies over Xiaomi’s use of InterDigital’s patents that cover various mobile technologies.

According to a RCRWireless report, the Chinese tech giant has entered into a global licensing deal with InterDigital to settle lawsuit that both companies were involved in. This lawsuit was filed in China and in India over different aspects of the technology use and licensing rates of some of InterDigital’s standard essential patents (SEPs). Through the new agreement, both firms have agreed to dismiss all pending legal disputes. Furthermore, the licensing agreements covers InterDigital’s SEPs for 3G, 4G, and 5G cellular, along with Wi Fi and High Efficiency Video Coding (HEVC).

Paul Lin, Xiaomi’s VP of global business development and IP strategy stated that “Xiaomi has continuously invested in core standards research to emerge as a top contributor to standard essential technologies in the world.” He further added that “In the past year, the Xiaomi and InterDigital teams worked hard to understand each other’s needs and diligently seek to narrow the gaps. I’m glad, now that all disputes are resolved between the two parties, Xiaomi can remain laser-focused on bringing innovative products to market.

Similarly, InterDigital’s chief licensing officer, Eeva Hakoranta said that the company is “very pleased to conclude this agreement with Xiaomi, which recognizes our long-term investment in research and innovation in standards-based technologies and the strength and breadth of our patent portfolio across several key technologies.”

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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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Qualcomm is known as a chip manufacturer but it also has another business which involves designing and marketing of wireless telecommunications products.

While most of its revenue is gotten from chip manufacturing, profit is actually from patent licensing. The latter has put it into troubles with clients like Apple and also regulators, with lawsuits and fines flying around. However, things may get better soon.

Qualcomm has two license patents for phone manufacturers – one is the full suite that costs clients 5% of the price of the phone and then there is a standard suite that provides what you need to connect to data networks for 3.25% of the cost of the phone.

Before, a lot of manufacturers used to apply for both licenses to avoid getting into trouble with Qualcomm but Qualcomm has been working on improving relationships by offering more features for the lower-priced patents. The cheaper license now includes 5G patents without an increase in price.

It has also been revealed by Qualcomm’s head of licensing division, Alex Rogers, that the patent fees only apply to the first $400 of the net selling price of the device. Before it was put at $500.

According to Rogers, the 5G licensing moves are “regulator friendly” and are “creating a foundation for stability going forward”.

READ MORE: Broadcom Withdraws Its Bid To Acquire Qualcomm

These new deals should also help Qualcomm iron out the licensing issues it has with two licensees of which Apple is one of them. The other company is rumored to be Huawei.

(Source)

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