Breaking News Bar
updated: 11/27/2012 7:52 AM

Ericsson sues Samsung as patent licensing negotiations fail

hello
Success - Article sent! close
  • Associated Press  Ericsson AB, the world's largest maker of wireless networking equipment, sued Samsung Electronics Co. for patent infringement, saying the South Korean phone maker failed to extend a licensing deal after years of negotiations.

      Associated Press Ericsson AB, the world's largest maker of wireless networking equipment, sued Samsung Electronics Co. for patent infringement, saying the South Korean phone maker failed to extend a licensing deal after years of negotiations.

 
Associated Press

Ericsson AB, the world's largest maker of wireless networking equipment, sued Samsung Electronics Co. for patent infringement, saying the South Korean phone maker failed to extend a licensing deal after years of negotiations.

Ericsson said in the lawsuit filed in U.S. federal court in Texas that Samsung is improperly using its technology for mobile phones after a previous agreement expired. The Stockholm-based company said it offered to extend the deal on fair and reasonable terms, known as FRAND.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

"These negotiations have been unsuccessful for the simple reason that Samsung refuses to pay the FRAND rate paid by its competitors for Ericsson's standard-essential patents," Ericsson said in the suit filed today in the U.S. District Court for the Eastern District of Texas.

Samsung is engaged in separate patent battles around the globe with Apple Inc. as the two companies fight for dominance in the smartphone and tablet computer markets. Ericsson spent $5 billion on research and development in 2011 and made a net gain of 6.2 billion kronor ($937 million) from licensing the technology to other companies last year, Kasim Alfalahi, Ericsson's head of intellectual property, said today in a phone interview.

Ericsson has "demanded prohibitively higher royalty rates to renew the same patent portfolio," Samsung said in a separate statement today. "As we cannot accept such extreme demands, we will take all necessary legal measures to protect against Ericsson's excessive claims."

Ericsson shares rose 0.1 percent to 59.9 kronor at 12:02 p.m. in Stockholm trading, underperforming Sweden's benchmark OMX Stockholm 30, which was up 0.2 percent.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.