Swedish company Ericsson announced this Monday that it has reached an out of court settlement with Samsung over a string of lawsuits that started last 2012. The world’s number one mobile equipment maker sued Samsung last 2012 over what it claims as patent infringements which covered several technologies ranging from clear voice transmission, touchscreen functionality, and network efficiency.
Specifics of the settlement were not revealed however it is known that Samsung will be paying Ericsson $650 million plus years of royalty to end the technology dispute.
Both companies first cooperated in 2001 when Samsung approached Ericsson to use its handset and network patents. In 2007 both companies renewed their deal however in 2011 they had a disagreement over what Samsung says was an increased royalty fee being asked by Ericsson.
Kasim Alfalahi, chief intellectual property officer at Ericsson, said that “Our intention has always been to enter an agreement with Samsung. Really, we have no interest in lengthy court processes and don’t want to make life hard for Samsung or anyone else for that matter. I’m truly pleased that we didn’t need a court order to agree in the end.”
Samsung also released a statement echoing the sentiments of Ericsson saying that it was pleased to renew its license agreement with Ericsson and that it preferred negotiations over litigation.
Ericsson released a statement saying that the initial payment will lift Q4 sales by 4.2 billion Swedish crowns ($652 million) and net income by 3.3 billion. Stocks of the company have increased by 2.3 percent when this news was announced.
With the dispute between Ericsson now over the only remaining problem of Samsung right now is Apple. Apple has accused the South Korean company of copying its iPhone and iPad designs with both companies expected to go on trial this March. The court handling the case in California however said that both companies should try to negotiate and settle their dispute before the case begins.
Ericsson right now does not have any high profile patent disputes. It does however have minor patent proceedings against smaller companies. The company holds one of the largest patent portfolios which consist of more than 30,000 patents.