Ericsson and ZTE have reached an agreement over royalty payments after Ericsson sued the Chinese manufacturer over infringements on several of its GSM and 3G/UMTS cellular patents. Ericsson filed lawsuits in April 2011 in Germany, UK and Italy.
Both parties have now signed a global cross-licensing agreement and have also agreed to drop all litigation. The agreement covers all markets, including China.
‘Ericsson has the strongest patent portfolio in the industry with over 27,000 patents and any company which sells mobile devices or systems needs a license from Ericsson. We have signed more than 90 patent agreements with different vendors worldwide. Now we can add ZTE to this group,’ said Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson.
ZTE has signed a royalty bearing cross-licensing agreement that complies with Fair, Reasonable and Non- Discriminatory (FRAND) royalty compensation for access to part of Ericsson's patent portfolio.