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Ericsson sues Samsung in the US for alleged patent breach of contract

The Swedish telecommunications network and equipment manufacturer Ericsson has filed a lawsuit against Samsung in the Eastern District Court of Texas (United States) accusing the South Korean company of violating contractual commitments to negotiate in good faith and license patents under fair conditions, reasonable and nondiscriminatory.

The Scandinavian multinational has pointed out that the negotiation of various license renewal processes can delay the payment of royalties, although once the agreements are renewed, the unpaid royalties will be recovered and accounted for as income.

In this regard, Ericsson has warned that the delay in royalty payments and the potential costs of litigation, together with the geopolitical impact and the shift from 4G to 5G on phone sales volumes, can have an adverse impact of between SEK 1 billion and 1.5 billion (€ 97 and € 146 million) in quarterly operating income from the first quarter of 2021.

In the first nine months of 2020, the Swedish telecommunications network and equipment manufacturer made an attributable net profit of SEK 9,961 million (€ 971 million), in contrast to losses of SEK 2,207 million (€ 215 million). ) of the same period of 2019.

© 2020 Europa Press.

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