Ericsson said it had filed a lawsuit in the district court for the Eastern District of Texas, accusing Samsung of “violating contractual commitments to negotiate in good faith and license patents on Fair, Reasonable and Non-Discriminatory (FRAND) terms and conditions. “.
Many common technology standards, such as Wi-Fi and Bluetooth, are protected by company-specific patents. In order for other manufacturers to use this essential technology, the holders of these patents are required to grant licenses under fair, reasonable and non-discriminatory conditions, the so-called FRAND conditions.
In practice, however, negotiations over these licenses sometimes lead to conflicts between technology companies.
Shares in Swedish telecoms manufacturer Ericsson fell on Friday after it announced it was suing South Korea’s Samsung, warning that the dispute could see sales hit by more than $ 500 million in 2021.
In the first hour of trading on the Stockholm Stock Exchange, Ericsson’s share price fell about seven percent.
The financial impact of the litigation, along with delays in license agreement renewals and market conditions, could adversely affect Ericsson’s operating income of between one and 1.5 billion SEK (approximately Rs 1,307 million) each quarter to from the first quarter of 2021. said the company.
Ericsson, which is a leading provider of mobile network equipment along with Nokia of Finland and Huawei of China, recorded net sales of SEK 227.2 billion (approximately Rs. 1.98027 crore) in 2019.
Is this the end of the Samsung Galaxy Note series as we know it? We talked about this on Orbital, our weekly tech podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.