Earlier in the week, Ericsson took upon itself to file a lawsuit against Samsung in the US. The company alleged that Samsung breached contractual commitments – and even failed to negotiate over patent licensing as well as related payments.
In accordance with what the latest reports have been suggestive of, the telecom giant is actually accusing Samsung of violating the company’s obligations for its essential patent licensing falling under FRAND (Fair, Reasonable and Non-Discriminatory) terms. Moreover, Ericsson also wants a declaratory ruling that the company actually complied with its very own licensing commitments. In response to all this though, a spokesperson who belongs to Samsung had recently gone on to claim that the company has indeed received the complaint and that the brand will review it as well as determine an appropriate response.
In announcement which was subject to being made in the 11th of December, Ericsson stated that the royalty payments for the sake of the company’s intellectual property could in fact be delayed if the renewal negotiations are not subject to being concluded before the current one ends up being expired. In accordance with Ericsson, the delay with respect to the royalty payments as well as the potential cost of litigation could have see Ericsson look at an operating income between that of roughly 118 to 177 million US dollars – starting the first quarter of the next year.
Ericsson took the decision of filing a complaint against Samsung in the District Court for the Eastern District of Texas. In the complain, the company claimed 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.” Further, Ericsson continued by saying that both the parties involved in Ericsson as well as Samsung understand that Samsung owes Ericsson a substantial payment.