STOCKHOLM, Sweden, March 17, 2003 (PRIMEZONE) -- Ericsson (Nasdaq:ERICY) and InterDigital Communications Corporation (InterDigital), along with its subsidiary InterDigital Technology Corporation (ITC), today announced a settlement ending the companies' long-standing patent infringement litigation.Under the settlement agreement, the companies have entered into a non-exclusive, worldwide, royalty-bearing license agreement covering all of ITC's patents for GSM, TDMA (D-AMPS), GPRS, EDGE and PDC.
Additionally, all claims asserted in the patent infringement litigation are dismissed. In exchange, Ericsson will make an annual payment of a limited fixed amount through 2006 for sales of covered infrastructure equipment.
The royalty payments are part of a settlement of a dispute and will not significantly affect Ericsson's earnings. The agreements cover both past and future sales of the relevant products.
At the same time, Sony Ericsson and ITC have entered into a similar license agreement concerning handsets, under which Sony Ericsson will pay royalties to ITC through 2006.
For sales through December 2002, Ericsson and Sony Ericsson will pay ITC approximately US $34 million. For the years 2003 through 2006, Ericsson will pay ITC an annual fee of US $6 million for sales of infrastructure equipment. Sony Ericsson will, for the years 2003 through 2006, pay a royalty on each licensed product sold.
Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at http://www.ericsson.com/press