Lifted a company Erickson sued in the United States against a company Samsung is in a dispute over royalty payments and patent licenses, leading to a sharp drop in Ericsson shares on Friday as it warned the dispute could affect profits.
The telecom equipment maker said late payments of royalties and potential legal costs could reduce Ericsson’s operating income by between 1 and 1.5 billion Swedish kronor (between $ 118 and $ 177 million) every quarter, starting in the first quarter of the year. 2021. It added that any suspension of payments could be compensated once the dispute was resolved.
Royalties from Ericsson’s patent portfolio are expected to account for about a third of its forecast for operating profit of 29 billion crowns in 2021, and this lawsuit could reduce profits by about 20 percent every quarter, according to an analyst at ( Liberum (Janardan Menon).
The Swedish company also said: The shift in sales from 4G phones to 5G phones will affect royalties as well.
A Samsung spokeswoman said: “When we receive the complaint, we will review it and determine the appropriate response.”
And it was Last dispute On patent ownership rights between the two companies in 2012 when Ericsson took legal action against the South Korean company over alleged patent infringements.
It took two years to solve the problem, with Samsung paying the Swedish company $ 650 million plus years of royalties to end the battle.
Lawsuits over royalty payments are common in the technology industry, as Samsung has also fought with Qualcomm and Apple over patents and royalty payments.
Samsung signed a licensing agreement with Ericsson in 2001 covering patents on the telephone and the network, and this deal was renewed in 2007, and then renewed for a third time in 2014 after a legal battle that lasted years.