Ericsson
(Stockholm)

Ericsson and ZTE Resolve Patent License Issues

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Both parties drop all lawsuits

  ZTE signs royalty-bearing license agreement to certain Ericsson patents

In April 2011 Ericsson (NASDAQ:ERIC) filed lawsuits in Germany, UK and Italy against ZTE for infringing on several Ericsson patents related to GSM and 3G/UMTS cellular technology

The parties have now signed a global cross-licensing agreement and both parties have also agreed to drop all litigation.

"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," says Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson.

ZTE signs 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.

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Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.

Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 180 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.

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