Ericsson sues Samsung

Ericsson is suing its South Korean competitor Samsung. The total value of the lawsuit has not been revealed but it concerns technology which is in the majority of Samsung's phones.

The dispute between the two telecoms companies centres on patents for mobile phone technology. Ericsson has had a licencing agreement with the Samsung which gives the South Korean company the right to use fifteen different Ericsson patents in three technology areas.

Primarily the patents relate to GSM technology, but also GPRS and EDGE.

The lawsuit has been filed in four countries – the USA, Germany, the UK and Holland.

Ericsson’s agreement with Samsung expired at the end of last year and the companies have not managed to sign a new contract.

“For a long while we’ve had negotiations with Samsung about renewing their licence agreement with us. And our view is that we’re not getting anywhere with the discussions so now we have taken the step to sue them,” said Åse Lindskog, press officer at Ericsson.

“We ploughed a lot of money over the years into developing GSM, EDGE and GPRS technologies. And it’s normal in the industry that you pay for using others’ patents. It’s very unusual to do what Samsung are doing, continuing without an agreement,” she said.

Lindskog did not reveal how much Ericsson is demanding or what the absence of the agreement is costing Ericsson.

Samsung Sweden said that the company does not comment on ongoing legal actions. Samsung is the world’s third largest mobile phone producer and sold around 100 million handsets in 2005.

TT/The Local


Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.