Ericsson and LG Electronics have renewed and signed a global patent license agreement on Frand terms and conditions between the two companies. You should note that both companies are leading contributors to the GSM (2G), UMTS (3G), and LTE (4G) cellular communication standards. Moreover, both companies are making significant investments in the development of the NR (5G) standard.
Commenting on the development, Gustav Brismark, Chief Intellectual Property Officer at Ericsson disclosed that they are pleased with the new agreement with LG Electronics. The agreement will enable the company to focus on the development of new technologies for the global market.
The deal will be a breaker for the ever-growing patent portfolio of the company. Brismark added that the agreement confirms the value of our patent portfolio and validates our ability to license it on FRAND terms and conditions. He added that it is crucial for the company to obtain a fair return on R&D investments through patent licensing. Hence, it is important for the company to ensure new investments in innovation and the continued success of open standardization.
The agreement signed by Ericsson and LG Electronics includes a cross-license that covers patents related to 2G, 3G, and 4G technologies. The companies haven’t revealed any of the terms and termed it as highly confidential.
