Ericsson Sues Samsung For Non-compliance With FRAND Commitments - Quick Facts

(RTTNews) - Ericsson (ERIC) has filed a lawsuit in the U.S District Court for the Eastern District of Texas, against Samsung (SMSN.L, SSNNF.OB, SSNLF.OB), for violating contractual commitments to negotiate in good faith and to license patents on Fair, Reasonable and Non-Discriminatory (FRAND) terms and conditions. Ericsson said the case addresses breaches of FRAND obligations by Samsung.

The FRAND system is a fundamental building block of a rich ecosystem that has allowed global cellular connectivity to scale to more than 8 billion interoperable connections. It allows access to intellectual property, developed by contributors like Ericsson, under global mobile standards, on FRAND terms and conditions.

Ericsson said current geopolitical conditions are impacting handset sales volumes as is the shift from 4G to 5G handsets. The company noted that this, in combination with delayed royalty payments from unlicensed periods and potential costs of litigation, may impact Ericsson's operating income by 1 - 1.5 billion Swedish kronor a quarter beginning in the first quarter 2021.