Ericsson announced that it would take Samsung to court in the US, alleging that the Korean company had failed to comply with a contractual commitment regarding payment of royalties and patent licenses.
In a statement, Swedish telecom equipment supplier Ericsson said that this incident was related to Samsung violating its FRAND commitments (roughly translated as fair, reasonable and non-discriminatory. ) and seeks to ask the court to rule that Ericsson has complied with its own commitments.
|Ericsson sparked a legal battle with Samsung over royalty payments|
The goal of FRAND is to encourage the integration and expansion of technology availability by sharing the same patent by many different companies.
According to Ericsson, their current intellectual property (IP) portfolio includes more than 54,000 patents that have been licensed.
Due to delayed royalties and litigation costs, Ericsson warns that their operating income could be affected and lost from $ 117.8 million to $ 176.7 million per quarter, starting from Q1 2021. Ericsson notes that, the cadastral conditions Value is impacting handset sales as well as the shift from 4G to 5G networks is also likely to affect that financial decline.
This is not the first time the two companies have brought the case to court. Earlier in 2012, Ericsson and Samsung were also involved in another copyright dispute, which led to the South Korean tech giant spending $ 650 million to reach the deal.
After the announcement, Ericsson shares fell 8.2% after the first session in Stockholm, most likely because investors worried about Ericsson’s earnings forecast.
Bloomberg News reported that a Samsung spokesperson said that after receiving the complaint, Samsung will review and determine an appropriate response.
Phan Van Hoa (from Rcrwireless)
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