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Ericsson Settles Software Licensing Dispute With Airvana

Ericsson AB (ERICB), the world’s largest maker of wireless networks, agreed to settle an intellectual-property dispute with software maker Airvana Networks Solutions Inc., according to a court filing.

Airvana sued Stockholm-based Ericsson in New York State Supreme Court in Manhattan in February 2012 for more than $330 million, accusing it of developing software based on Airvana’s trade secrets and using it to operate wireless network equipment to avoid paying license fees.

Justice Barbara Kapnick in March granted Chelmsford, Massachusetts-based Airvana a preliminary injunction blocking Ericsson from “using, operating, testing or deploying” certain hardware unless it’s using software licensed from Airvana.

The parties reached an agreement in principle to resolve the dispute as a result of a mediation session on May 9, although the resolution is “complicated” and the details of the settlement are still being negotiated, Ericsson said in a court filing today.

Ericsson asked Kapnick in the filing to adjourn a May 24 hearing as the agreement “would obviate the need for the hearing and the extensive work required by Ericsson in advance of the hearing.”

Kathy Egan, a spokeswoman for Ericsson, said in an e-mail that the company had “no additional comment at this time beyond the filing that we have submitted to the court.”

Airvana didn’t immediately respond to a phone message left at its headquarters seeking a comment on the filing.

The case is Airvana Network Solutions Inc. v. Ericsson Inc., 650360-2012, New York State Supreme Court, New York County (Manhattan).

To contact the reporter on this story: Chris Dolmetsch in New York State Supreme Court at 8969 or cdolmetsch@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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