Ericsson and OPPO sign global patent cross license agreement
Rhea-AI Summary
Ericsson (NASDAQ: ERIC) and OPPO have signed a multi-year global patent cross license agreement covering cellular technologies, including 5G. OPPO, a leading smartphone vendor, will make royalty payments to Ericsson. The agreement also includes business cooperation on 5G-related projects such as device testing and customer engagements.
This royalty-bearing license agreement allows Ericsson to further invest in fundamental communications technologies. It reflects the mutual respect for each other's patent portfolios and confirms the effectiveness of the patent licensing industry. The financial benefit of this agreement was already reflected in Ericsson's Q2 2024 financial results.
Ericsson, a leading contributor to 3GPP and global mobile standards development, holds a patent portfolio of over 60,000 granted patents. The company invests more than SEK 45 billion annually in R&D, strengthening its position as a 5G vendor and patent holder.
Positive
- Multi-year global patent cross license agreement signed with OPPO
- Royalty payments from OPPO to Ericsson
- Business cooperation on 5G-related projects
- Financial benefit already reflected in Q2 2024 results
- Strengthens Ericsson's position in 5G technology and patents
Negative
- None.
News Market Reaction – ERIC
In the trading session that priced this news, ERIC declined 2.84%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Multi-year global cross license covering cellular technology, including 5G
- Royalty payments from OPPO to Ericsson
- Business cooperation on 5G related projects such as device testing and customer engagements
In addition to a cross license, OPPO and Ericsson will conduct business cooperation on a number of projects related to 5G, including device testing, customer engagements and marketing activities.
Christina Petersson, Chief Intellectual Property Officer at Ericsson, says: "This important royalty bearing license agreement with OPPO allows Ericsson to further invest in fundamental communications technologies. The license confirms that the patent licensing industry works and is proof that a vast majority of license agreements are based on business negotiations. It also reflects the mutual respect for each other's patent portfolio. We now look forward to growing Ericsson's IPR revenues with additional 5G agreements and expansion into additional licensing areas, such as IoT and consumer electronics."
This agreement is in line with global practice where companies that provide products using cellular 3GPP standards such as 5G need a license agreement with patent holders in order not to infringe these patents, and also for patent holders to be compensated for their R&D investment.
The financial benefit of this agreement was already reflected in Ericsson's Q2 2024 financial results.
Over several decades, Ericsson has been a leading contributor to 3GPP and to the development of global mobile standards. The value of Ericsson's patent portfolio of more than 60,000 granted patents is strengthened by our leading position as 5G vendor, our leading 5G patent portfolio and annual investments of more than
NOTES TO EDITORS:
FOLLOW US:
Subscribe to Ericsson press releases here
Subscribe to Ericsson blog posts here
https://twitter.com/ericsson
https://www.facebook.com/ericsson
https://www.linkedin.com/company/ericsson
MORE INFORMATION AT:
Ericsson Newsroom
media.relations@ericsson.com (+46 10 719 69 92)
investor.relations@ericsson.com (+46 10 719 00 00)
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
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
Ericsson and OPPO sign global patent cross license agreement |
View original content:https://www.prnewswire.com/news-releases/ericsson-and-oppo-sign-global-patent-cross-license-agreement-302196629.html
SOURCE Ericsson