Benzinga | May 7, 2021 06:20AM EDT

Ericsson, Samsung Forge Global Patent License Agreement

* Telefonaktiebolaget L M Ericsson (NASDAQ: ERIC) and Samsung Electronics Co Ltd (OTC: SSNLF) inked a multi-year agreement on global patent licenses, including patents relating to cellular technologies. The cross-license agreement encompasses sales of network infrastructure and handsets from Jan. 1, 2021.

* The companies agreed to advance the mobile industry in open standardization and create valuable solutions for consumers and enterprises.

* The arrangement ended the complaints filed by the companies before the U.S. International Trade Commission (USITC) and the ongoing lawsuits in several countries and approves the value of the strong patent portfolios of both companies.

* The agreement details remain confidential.

* Ericsson's IPR licensing revenues for Q2, including the new agreement, is expected to lie between SEK 2 billion and 2.5 billion.

* Ericsson was delighted to sign a mutually beneficial agreement with Samsung, which confirmed the value of its patent portfolio and further illustrated Ericsson's commitment to FRAND (fair, reasonable, and non-discriminatory) principles, Ericsson Chief Intellectual Property Officer, Christina Petersson said.

* Price action: ERIC shares closed at $13.69 on Thursday.