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| Ericsson begins a new patent war with Samsung |
Ericsson filed a lawsuit over patent fees and a patent license in the US that caused Ericsson's stock price to drop on Friday as it warned that the dispute could affect profits.
The telecommunications equipment manufacturer said that, as of the first quarter of this year, delays in paying Ericsson's royalties and potential legal fees each quarter could reduce Ericsson's operating profit from 100 to SEK 1.5 billion a quarter (introduction). Between $ 118 million and $ 177 million). 2021. He added that once the dispute is resolved, the payment suspension can be compensated.
One analyst said royalties from Ericsson's patent portfolio are expected to account for a third of its estimated operating profit of SEK 29 billion in 2021 and that this lawsuit could reduce profits by about 20% each quarter. Liebrom (Janardan Menon).
The Swedish company also said that shifting sales from 4G phones to 5G phones will also affect licensing fees.
A Samsung spokesperson said, "If we receive a complaint, we will look into it and find the appropriate response."
The last patent dispute between the two companies took place in 2012 when Ericsson filed a lawsuit against the South Korean company for patent infringement.
It took two years to fix the problem: Samsung paid the Swedish company $ 650 million plus years of user fees to end the battle.
Disputes over property rights are rife in the tech industry, as Samsung has also fought battles with Qualcomm and Apple over patents and royalties.
Samsung signed a license agreement with Ericsson in 2001 that included patents for phones and the Internet. The contract was renewed for the third time in 2007 and 2014 after years of litigation.