Patent-settling deal with Ericsson to see outgo of $650 m plus royalties

Written by Reuters | Stockholm | Updated: Jan 28 2014, 08:59am hrs
Ericsson, the worlds biggest telecom network equipment maker, and Samsung Electronics have reached a deal to end all patent-related legal disputes.

Ericsson said on Monday the agreement included an initial payment and royalty payments from Samsung for the term of the multi-year license agreement and would affect Ericssons operating cash flow at the beginning of 2014.

Ericsson said the settlement would impact its fourth quarter sales by 4.2 billion Swedish crowns ($652 million) and net income by 3.3 billion Swedish crowns ($512 million).

This agreement allows us to continue to focus on bringing new technology to the global market and provides an incentive to other innovators to share their own ideas, said Kasim Alfalahi, Ericssons chief intellectual property officer.