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Legal dispute between Ericsson and Samsung ends

Ohio business owners may have heard of a recent settlement between two international technology firms. Ericsson and Samsung have been involved in a number of legal disputes regarding patents and licensing fees. The business litigation disputes are related to wireless technology that is currently in use in a wide range of equipment, including smartphones, tablets and other devices. The patent disputes have been on-going for several years and involve multiple lawsuits. Some of those lawsuits had been filed with the United States International Trade Commission and are related to the use of patented technology found in a wide range of Samsung's products.

The two companies have a history of using business litigation to obtain a more beneficial royalty structure regarding the use of such technology in their products. Another case in 2007 resulted in an agreement for lawsuits in both the United States and Europe. In the 2007 case, Samsung agreed to make payments to Ericsson. However, the latest dispute suggested that Ericsson was charging unreasonable license fees from Samsung.

Recently, a settlement between the two corporations was reached after a licensing deal was made. The agreement came just before a judge was ready release findings concerning the dispute, and the compact concerned licensing for LTE, UMTS and GSM standards. According to one source, the agreement is expected to increase Ericsson's fourth-quarter sales dramatically.

A business litigation case may have a dramatic impact on both companies involved. The outcome of court rulings and settlement agreements may affect business profits, licensing agreements and the rights to patents held by one party. An attorney familiar with business and commercial litigation may be able to help a company involved in disputes protect rights related to patents or licensing contracts. Such an attorney may also be able to review the agreements signed by all parties previously, help enforce the terms of previous agreements or negotiate new agreements that are equitable and beneficial for all parties involved.

Source: Bloomberg, "Ericsson Reaches Patent Deal With Samsung Ending Legal Disputes", Susan Decker and Adam Ewing , January 27, 2014

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