This year we have seen many patents being filed and many companies facing lawsuits one after the other. We have already known that many tech giants, including Google, Amazon, and Facebook, are facing lawsuits. But, recently, one more tech company is facing a case, and this time, it is the South Korean tech giant Samsung Electronics.
Ericsson filed the suit, and it claimed that the South Korean tech giant has breached contractual commitments and even failed to negotiate over patent licensing and related payments.
According to sources, Ericson blamed Samsung for violating its obligations for essential patent licensing under FRAND (Fair, Reasonable and Non-Discriminatory) terms. The company further is demanding a declaratory ruling that the company complied with its licensing commitments. A Samsung spokesperson stated that “Once we receive the complaint, we will review it and determine an appropriate response.”
In an announcement on December 11, Ericsson stated that the intellectual property’s royalty payments could be delayed if the renewal negotiations do not conclude before the current one expires. According to the telecom equipment provider, the delay in royalty payments and the potential cost of litigation could have Ericsson see an operating income hit between roughly 118 to 177 million US Dollars starting in the first quarter of next year.
Ericsson has filed its complaint against Samsung in the District Court for the Eastern District of Texas. The complaint states that “Without 4G and 5G technology and Ericsson’s inventions incorporated therein, smartphones and other mobile devices would not be able to provide the constant on-the-go access to video, streaming media, and gaming that consumers expect today. both parties understood that Samsung would owe Ericsson a substantial balancing payment.”
