Huawei to make royalty payment to Ericsson from 2016

Telecom network rivals Ericsson and Huawei on Thursday announced their global patent license agreement.

The highlight of the agreement is that Huawei will make on-going royalty payment based upon actual sales to Ericsson from 2016 and onwards as part of the renewed agreement.

The extension of the earlier agreement includes a cross license that covers patents relating to both companies’ wireless standard-essential patents including the GSM, UMTS and LTE cellular standards.

Under the agreement, both companies are able to access and implement the other company’s standard essential patents and technologies globally, according to Kasim Alfalahi, chief intellectual property officer at Ericsson.

“This new agreement reflects the two leading companies’ joint view that innovation and intellectual property rights shall be protected, and reasonable compensation for the implementation of intellectual property rights is vital to promoting technology innovation,” said Jianxin Ding, head of Global Intellectual Property, Huawei Technologies.

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