Ericsson and LG end patent fight and strike FRAND deal
Ericsson and LG Electronics have renewed their global licensing agreement on fair, reasonable, and non-discriminatory (FRAND) terms, putting an end to pending litigation between the competitors.
Sweden-based Ericsson announced the deal, which covers standard-essential patents (SEPs) relating to the 2G, 3G, and 4G standards, on Monday, July 30.
The agreement comes after Ericsson accused its South Korean competitor of refusing to agree to a FRAND licence, in a complaint filed at the US District Court for the Eastern District of Texas, Sherman Division, in March.
Ericsson said that LG had previously licensed Ericsson’s SEPs in three reciprocal deals relating to cellular communications standards, but the licences expired and LG refused to accept the renewed FRAND offer.
LG reportedly claimed that the offer had not been made on FRAND terms.
Speaking to WIPR, a spokesperson for Ericsson confirmed that all pending claims against LG have been dismissed as part of the agreement announced earlier this week.
The renewed deal includes a global cross licence which covers both companies’ patents relating to GSM (2G), UMTS (3G), and LTE (4G) cellular communication standards, the press release said.
Ericsson and LG are two of the “leading contributors” to the standards, according to the release, and are involved in the development of the NR (5G) standard alongside companies such as Nokia and Orange.
Members of the 3rd Generation Partnership Project, a collaboration of standards-development associations in the telecoms industry, approved the first 5G specifications in June.
Gustav Brismark, chief IP officer at Ericsson, said: “The agreement confirms the value of our patent portfolio and validates our ability to license it on FRAND terms and conditions.”
Terms of the agreement have not been made public.
So far this year, a number of licensing agreements have been struck across a broad range of industries.
Last month, Samsung signed an agreement to license Wi-Fi SEPs from a subsidiary of patent pool operator Sisvel Group.
In May, technology company TiVo signed a multi-year IP licensing deal with Fnac Darty, a European retailer of entertainment and leisure products.
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