Ericsson and LG Electronics are two of the top contributors to 2G, 3G and 4G standards and are both investing in extending that leadership to 5G.
While the terms of the deal are confidential, Ericsson chief intellectual property officer Gustav Bismark said the company is “very pleased” with the new agreement.
“It will allow us to focus on developing new technology for the global market and add to our already industry-leading patent portfolio. The agreement confirms the value of our patent portfolio and validates our ability to license it on FRAND terms and conditions,” he said.
Ericsson had filed a lawsuit in a US district court in March accusing LG Electronics of refusing to license Ericsson's standard-essential patent portfolio for a fair price.
Ericsson had reportedly been seeking rulings that its actions in pursuing a licensing agreement with LG Electronics comply with the FRAND guidelines, and another ruling that LG Electronics had been violating its own FRAND obligations.
With the new cross-licensing agreement, this dispute has presumably been settled.