Ericsson takes action for fair and reasonable patent licensing
STOCKHOLM, SWEDEN -- (Marketwire) -- 11/27/12 --
* Ericsson has filed a patent infringement action against
Samsung after it refused to sign a license agreement on FRAND (Fair,
Reasonable and Non-Discriminatory) terms, despite two years of
* Ericsson believes it must take action to support a crucial system
for technology sharing that has helped create today's mass market
Ericsson (NASDAQ: ERIC) has today filed a lawsuit in the United
Samsung for infringing its patents, after nearly two
years of negotiations failed to reach an agreement.
The dispute concerns both Ericsson's patented technology that is
several telecommunications and networking standards used
by Samsung's products
as well as other of Ericsson's patented
inventions that are frequently implemented in wireless and consumer
electronics products. Ericsson has concluded that it has no option
other than legal action after negotiations have
not been successful
since Samsung has refused to take a license on FRAND terms.
Ericsson helped to create the mobile telephone system by contributing
of its inventions to the standard in exchange for a fair
royalty. To date, Ericsson has signed more than 100 license
agreements with all major players in
In 2011 alone, Ericsson spent SEK 32.6 b. (USD 5.0 b.) on research
and development. This has resulted in hundreds of patented inventions
that are essential to the standards that drive global communications,
such as GSM, GPRS,
EDGE, WCDMA, LTE and 802.11 as well as many other
patented inventions that are
widely implemented in most popular
wireless and consumer electronics products.
Ericsson holds one of the
strongest patent portfolios in the industry with more
Ericsson is committed to licensing its standard-essential patents on
Fair, Reasonable and Non-Discriminatory (FRAND) terms for the benefit
of the industry.
It believes that FRAND licensing strikes the
appropriate balance between incentivizing companies to contribute
technology to open standards and maintaining the overall royalty
rates at a reasonable level to allow new entrants access to the
"By the end of 2012 there will be approximately 6.6 billion mobile
in the world. The sharing of technology in the telecom
industry is one of the
main drivers behind this development. The
telecom ecosystem builds on fair and
reasonable terms that have
created an attractive global mass market for mobility
with Ericsson as a main contributor", says Kasim Alfalahi,
Intellectual Property Officer at Ericsson.
The rapid growth of mobile devices and subscriptions is driven by
investments and sharing of technology by leading industry
players such as Ericsson.
Other companies that wish to use technology invented by Ericsson need
to do so. These license agreements have helped create
today's highly successful
global communications industry by driving
scale and creating low barriers of
entry to new players.
The industry's eco-system functions on mutual respect and shared
commercial interests. Ericsson is fully committed to supporting this
system and the basis
of trust that underlies it.
Despite nearly two years of negotiations involving the most senior
management of both companies, Samsung refused to renew its license to
Ericsson's industry leading portfolio of telecommunications patents
on the same ("FRAND") terms that
its competitors have previously
Samsung previously licensed Ericsson's patents in 2001 and renewed in
its license has now expired. Ericsson has extended an offer
to Samsung to renew
the license during negotiations that have lasted
nearly two years. These negotiations have not been successful since
Samsung has refused to take a license on FRAND terms.
"Ericsson has over 30,000 patents and more than 100 license
agreements with all
major players in the industry. Ericsson has tried
long and hard to amicably come
to an agreement with Samsung and to
sign a license agreement on FRAND terms. We have turned to litigation
as a last resort," Mr Alfalahi said.
The complaint is filed in the District Court for the Eastern District
USA, which is the district where Ericsson's US headquarters
NOTES TO EDITORS
Photos of Kasim Alfalahi attached
Download high-resolution photos and broadcast-quality video at
Ericsson is the world's leading provider of communications technology
and services. We are enabling the Networked Society with efficient
real-time solutions that allow us all to study, work and live our
lives more freely, in
sustainable societies around the world.
Our offering comprises services, software and infrastructure within
and Communications Technology for telecom operators and
other industries. Today
more than 40 percent of the world's mobile
traffic goes through Ericsson networks and we support customers'
networks servicing more than 2.5 billion subscribers.
We operate in 180 countries and employ more than 100,000 people.
Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In
2011 the company's net
sales were SEK 226.9 billion (USD 35.0
billion). Ericsson is listed on NASDAQ
OMX, Stockholm and NASDAQ, New
York stock exchanges.
Kasim Alfalahi Photo 1: http://hugin.info/1061/R/1660699/537851.jpg
Kasim Alfalahi Photo 2: http://hugin.info/1061/R/1660699/537852.jpg
Ericsson takes action for fair and reasonable patent licensing (pdf):
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