Ericsson sues Samsung for alleged patent violation

Ericsson headquarters Ericsson hold many patents that are essential to technologies that allow global communication

Related Stories

Ericsson has filed a lawsuit in the US against South Korea's Samsung Electronics for allegedly infringing its patents.

Sweden's Ericsson said Samsung failed to renew an expired licence agreement after two years of negotiations.

Samsung said Ericsson was demanding higher royalty rates for the same set of patents.

In recent months, almost all major mobile device companies globally have been involved in patent lawsuits.

'Essential' technology

Ericsson, one of the earliest innovators in the telecommunications field, holds thousands of patents for technologies used in everyday global communication.

"The dispute concerns both Ericsson's patented technology that is essential to several telecommunications and networking standards used by Samsung's products as well as other of Ericsson's patented inventions that are frequently implemented in wireless and consumer electronics products," Ericsson said in a statement.

Ericsson's lawsuit was filed in a court in Texas where its American operations are headquartered.

It did not state the amount it was seeking from Samsung in damages.

However, Ericsson said it had earned $938m (£585m) last year in revenue from more than 100 licence agreements with companies in the industry.

Samsung said it would contest the allegations.

"This time Ericsson has demanded significantly higher royalty rates for the same patent portfolio," the company said in a statement.

"As we cannot accept such extreme demands, we will take all necessary legal measures to protect against Ericsson's excessive claims."

Growing competition

The global system for licences allows for rival companies to agree the use of patents under fair, reasonable and non-discriminatory conditions.

Companies pay royalties to the patent holder and can use the technology to grow their business.

However, stiff competition in the mobile device market has lead to a much more protective stance by many companies over their patents in order to generate revenues.

Nokia and Apple have also taken rivals to court over patent infringement.

More on This Story

Related Stories

More Business stories

RSS

Features & Analysis

Elsewhere on the BBC

  • ClockMore for less?

    Could spending less time in the office make you perform more efficiently?

Programmes

  • A factory in JapanThe Travel Show Watch

    Factory infatuation – why Japan’s industrial compounds are drawing large crowds at night

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.