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Samsung to pay $650 million to Ericsson to end patent feud

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Last updated: January 28th, 2014 at 12:28 UTC+01:00

After sealing a ten-year patent licensing deal with Google earlier this week, Samsung has buried another hatchet by agreeing to pay $650 to Swedish networking manufacturer Ericsson. Ericsson sued Samsung in 2012 over patent infringements relating to its voice transmission, touchscreen functions and network efficiency technologies.

The case was filed by Ericsson in November 2012 after unsuccessful negotiations with Samsung over the usage of FRAND (fair, reasonable, and non-discriminatory) patents. Samsung originally signed a licensing deal with Ericsson in 2001 over use of its network related patents, and has renewed the deal in 2007. However, in 2011, talks over a new deal were unsuccessful as Samsung claimed that Ericsson was demanding higher licensing fees.

The agreement today sees Samsung making a one-time payment of $650 million to Ericsson, in addition to several payments over the years. Both organizations have also signed a cross-licensing deal that covers patents in the field of mobile networking.

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