Ericsson files patent royalty lawsuit against Samsung in U.S.

STOCKHOLM: Ericsson said on Friday it has filed a lawsuit in the United States against Samsung for alleged violations in negotiations for royalty payments and to licence patents.

Delayed royalty payments from unlicensed periods and potential costs of litigation may impact Ericsson's operating income by 1 billion Swedish crowns ($118.70 million) to 1.5 billion per quarter beginning in the first quarter 2021, the company said.

The Swedish company also said a shift in sales from 4G to 5G handsets would also impact royalty payments.


Samsung did not immediately respond to a request for comment.

The last patent royalty dispute between the two companies was in 2012 when Ericsson took legal action against the Korean company over alleged patent infringements.

It took two years to resolve the dispute when Samsung paid the Swedish mobile network equipment maker $650 million along with years of royalties to end the legal battle.

Ericsson said on Friday licence renewal negotiations (with Samsung) may delay the payment of royalties if they extend beyond the expiry of existing licences, and are expected to be recognised as revenue at the time of renewal.