Ericsson (NASDAQ: ERIC) and OPPO announced yesterday they have signed a multi-year global patent cross license agreement. This agreement includes a cross license covering patents essential to standards for cellular technologies, including 5G. OPPO, a smartphone vendor with sales in global markets, and significant presence in developing countries, will make royalty payments to Ericsson.
In addition to a cross license, OPPO and Ericsson will conduct business cooperation on a number of projects related to 5G, including device testing, customer engagements and marketing activities.
Christina Petersson, Chief Intellectual Property Officer at Ericsson, says: “The license confirms that the patent licensing industry works and is proof that a vast majority of license agreements are based on business negotiations. It also reflects the mutual respect for each other’s patent portfolio. We now look forward to growing Ericsson’s IPR revenues with additional 5G agreements and expansion into additional licensing areas, such as IoT and consumer electronics.”
This agreement is in line with global practice where companies that provide products using cellular 3GPP standards such as 5G need a license agreement with patent holders in order not to infringe these patents, and also for patent holders to be compensated for their R&D investment. Ericsson said it owns more than 60,000 granted patents.
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