Samsung has silenced Swedish networking firm, Ericsson by signing a cross-licensing agreement with former partner of Sony’s phone division with around $650 million being paid up front and regular payment of undisclosed amount.
Yesterday, Samsung has signed a similar deal with Google regarding the cross-licensing and using the patents for next 10 years. This means, Samsung seems decided to focus on innovations and sales rather than wasting time by following the unnecessary lawsuits.
Ericsson released a statement, in which the company said that the settlement to boost the Q4 sales by 4.3 billion Swedish Kronor (around $650 million in USD), where the net income could be at around $512.5 million USD. It also revealed that the South Korean smartphone-maker will be paying Ericsson regularly.
Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson said,
“We are pleased that we could reach a mutually fair and reasonable agreement with Samsung. We always viewed litigation as a last resort. 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.”
As per the deal, all patent infringement cases between two firms will be withdrawn that includes the lawsuits in U.S. District Court in Texas and the complaints before the U.S. International Trade Commission.
[Source: Ericsson ]