Ericsson recently filed a complaint against South Korean company Samsung for breaching its fair, reasonable, and non-discriminatory agreement (FRAND) on the cross-licensing patent technology of 2G to 5G. The company has pushed the lawsuit to a United States District Court after the evident violation made by Samsung.
The Swedish multinational and telecommunications company, Ericsson, is furious against Samsung for the breach of their agreement and has filed its lawsuit against the South Korean company in the US District Court. The Swedish company argued that it had delivered and honored the agreement on their end while the latter violated it.
According to Ericsson's recently filed legal complaint, Samsung violated the terms of its agreement in the cellular network patents, which the Swedish company has granted as "Essential Patents" open for any company to use. The complaint falls on the renewal of global cross-licensing agreements, which require Samsung to renew its terms.
For several years now, Ericsson and Samsung have worked together and under contract regarding the essential patents and cross-licensing technology of cellular networks. These networks include the initial 2G, 3G, 4G, and the latest 5G technology, currently the world's standard in the network connection.
However, as the contract between Ericsson and Samsung came to an end which spun a new contract last February 2019. The South Korean company did not agree with the terms and gave its counteroffer, which the Swedish company does not agree with and feels was an offer lacking "good faith."
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Ericsson: Negotiations Would Push a Massive $177 M Loss to Company
According to ZD Net, Ericsson reported that prolonged negotiations on the contract renewals from Samsung and other companies would cause a massive loss of 1 to 1.5 billion Swedish Krona, $177 million (as of December 14). The quarterly loss is undoubtedly a massive deal for Ericsson, which is why it pushed the lawsuit against Samsung.
Additionally, Samsung is not the only company that would have its contract ending with the Swedish telecoms company, meaning that Ericsson would have less fallback as it had before from agreements. Moreover, the company has launched the negotiations ever since February 2019, in which Samsung has not yet agreed to Ericsson's counteroffer until now.
Samsung's Devices are the Top Three Best Selling 5G Phones of 2020's 1st Half
It is also noting that Samsung saw a sweeping success with its release of one of the world's first in 5G smartphone technology, which became the top three best selling 5G phones in the first half of this year. The Samsung Galaxy S20+, Samsung Galaxy S20+ Ultra, and the Samsung Galaxy S20, took the top three spots accordingly.
The Samsung phones have taken 9 percent, 8 percent, and 5 percent of the total 5G global sales, bringing a massive 22 percent in smartphone revenues. Samsung is now asked to appear in court and present its case against Ericsson, with the US District court to hash out the dispute against FRAND commitments and breach.
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This article is owned by Tech Times
Written by Isaiah Alonzo
