Ericsson and Lenovo settle patent litigation

Rhea-AI Summary

Ericsson (NASDAQ: ERIC) and Lenovo have reached a settlement in their patent licensing dispute through a multi-year, global patent cross-license agreement. The settlement will result in:

- Withdrawal of all ongoing lawsuits and administrative proceedings in several countries, including actions before the United States International Trade Commission (USITC)
- Financial impacts expected from Q2 2025
- Remaining patent licensing disputes to be resolved through arbitration

Ericsson maintains a strong patent portfolio of over 60,000 granted patents, investing more than SEK 50 billion in R&D annually. The company is positioned as a leading 5G vendor and expects growth in IPR revenues through new 5G agreements and expansion into other licensing areas.

Positive

• Resolution of patent litigation reduces legal costs and uncertainty
• New multi-year licensing agreement secures future revenue stream
• Potential for increased IPR revenues through 5G agreements
• Strong patent portfolio of 60,000+ granted patents demonstrates technological leadership

Negative

• Financial impact delayed until Q2 2025
• Partial settlement requires additional arbitration to fully resolve disputes

• Settlement partially resolves patent licensing dispute between the parties, with financial impacts expected to be recognized from Q2 2025
• The parties further agree on arbitration to fully and finally resolve the remaining patent licensing dispute between the parties
• Settlement ends all ongoing patent-related legal proceedings between the parties

STOCKHOLM, April 3, 2025 /PRNewswire/ -- Ericsson (NASDAQ: ERIC) and Lenovo have reached a settlement to resolve their patent licensing dispute over a multi-year, global patent cross-license agreement between the two companies.

As part of the settlement, all ongoing lawsuits and administrative proceedings filed by both companies in several countries, including the actions pending before the United States International Trade Commission (USITC), will be withdrawn.

Financial impacts are expected to be recognized from Q2 2025, reflecting the partial settlement. The remaining patent licensing dispute will be fully resolved through an arbitration process between the parties.

Ericsson is a leading contributor to 3GPP and to the development of global mobile standards for the benefit of consumers and enterprises everywhere. The value of Ericsson's patent portfolio of more than 60,000 granted patents is strengthened by our leading position as a 5G vendor, and annual investments of more than SEK 50 b in R&D. The company is confident of growing its IPR revenues with new 5G agreements and by expanding into other licensing areas long term.
 

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ABOUT ERICSSON:
Ericsson's high-performing networks provide connectivity for billions of people every day. For nearly 150 years, we've been pioneers in creating technology for communication. We offer mobile communication and connectivity solutions for service providers and enterprises. Together with our customers and partners, we make the digital world of tomorrow a reality. www.ericsson.com

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Lenovo release

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SOURCE Ericsson

FAQ

What are the key terms of the Ericsson-Lenovo patent settlement in 2025?

The settlement includes a multi-year global patent cross-license agreement, withdrawal of all ongoing legal proceedings, and arbitration for remaining disputes, with financial impacts starting Q2 2025.

How many patents does Ericsson (ERIC) currently hold in its portfolio?

Ericsson holds more than 60,000 granted patents and maintains a leading position as a 5G vendor.

When will the financial impact of ERIC's Lenovo settlement be reflected in earnings?

The financial impacts of the settlement are expected to be recognized from Q2 2025.

How much does Ericsson (ERIC) invest in R&D annually?

Ericsson invests more than SEK 50 billion annually in R&D.