Ericsson Eric Multi-year worldwide patent cross-license agreement signed Oppo.
The agreement includes a cross-licensing of essential patents for mobile phone technologies, including 5G standards, and OPPO will pay royalties to Ericsson. Financial terms were not disclosed.
In addition to the cross-licensing agreement, OPPO and Ericsson will collaborate on a range of 5G-related initiatives, including device testing, customer engagement and marketing.
The agreement complies with global standards that require companies using 3GPP cellular technologies, such as 5G, to obtain licenses for patents to avoid patent infringement and to compensate patent holders for their research and development investments.
“This important royalty-bearing license agreement with OPPO will enable Ericsson to further invest in foundational communications technologies,” said Christina Petersson, Chief Intellectual Property Officer, Ericsson. “This license is confirmation that the patent licensing industry works and is proof that the majority of license agreements are based on business negotiations.”
“This reflects the mutual respect for each other’s patent portfolios. Looking ahead, we expect to grow Ericsson’s IPR revenue through additional 5G contracts and expansion into licensing areas such as IoT and consumer electronics.”
The financial impact of this agreement has already been recorded in the second quarter 2024 financial results.
Last week, Ericsson reported sales of 59.8 billion Swedish kronor, down 7 percent from a year ago. In U.S. dollars, sales of $5.597 billion beat analysts’ consensus estimate of $5.363 billion.
readEricsson’s bet on Vonage backfires: Slowing market growth leads to impairment charges in Q2
Price Action: ERIC shares were down 2.10% in premarket trading at $6.54 as of last check on Monday.
Disclaimer: This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
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