Ericsson says reaches deal with Samsung to end patent disputes

Reuters with CNBC.com
Monday, 27 Jan 2014 | 2:21 AM ET
Ericsson-Samsung dispute deal good for industry: Ericsson
Monday, 27 Jan 2014 | 2:40 AM ET
Kasim Alfalahi, chief intellectual property officer at Ericsson, says that the resolution of the patent dispute between Samsung and Ericsson is good for the technology industry.

Ericsson, the world's 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 Ericsson's 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).

Shares of Ericsson were trading up 2 percent after markets opened on Monday.

Kasim Alfalahi, chief intellectual property officer at Ericsson, told CNBC on Monday that Ericsson was "very pleased" the agreement had been reached and added the group was confident that the industry would continue to grow.

"The industry is based on sharing technology," he told CNBC Europe's "Squawk Box" on Monday shortly after the deal was announced. "Such an agreement means that Samsung will have access to the technology that Ericsson has innovated but also that we get access to the technology that Samsung has innovated."

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