Ericsson And Samsung Join Hands To End Patent Dispute

Patent wars, as it is commonly known in the technology circles around the globe, is what we have seen come to limelight after the Apple and Samsung design saga. However, the end result to most is the same and the firms who are at loggerheads end up joining hands and sharing royalties. Going by the legal system is just another way of arm twisting to squeeze a little extra from the other side.

The latest to the end a patent dispute is Samsung and Ericsson. Ericsson had sued the Korean mobile giant in late 2012, claiming that the company had infringed its patents. Now, Ericsson has signed a deal with Samsung that is going to help both the businesses to gain more. This will boost Ericsson’s fourth quarter sales by $652 million.

On Monday, Ericsson said a deal has been signed, which includes an initial payment and royalty payments from Samsung for a multi-year license agreement that would increase Ericsson's operating cash flow at the beginning of 2014. Soon after the announcement Ericsson’s shares were up by 2.7 percent in European stocks. It is always good to end a patent fight early as both the companies can grow faster. Ericsson has also sued Micromax in recent times in the Indian courts for Rs 100 crores over patent infringements.