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Samsung enters licensing agreement with InterDigital to end lawsuit

updated 08:16 pm EDT, Tue June 3, 2014

Patent licensing includes royalties for 3G, 4G technologies up to 10 year term

A agreement between Samsung and InterDigital has been reached today over wireless patents, saving Samsung from facing a ban on the import of its phones into the United States. Samsung will license patents from InterDigital, bringing an end to the litigation between the two companies. Details on the agreement were outlined in a filing with the Securities and Exchange Commission (SEC).

"We are very happy to have resolved the licensing dispute with Samsung on mutually agreeable terms," said InterDigital president William J. Merritt. "This agreement with Samsung shows how our longstanding patent licensing framework and process can lead to effective, productive discussions and eventual resolution on fair and reasonable terms."

The SEC filing gives indication on the length of the deal, stating that Samsung will be under agreement for the patented technology until 2017. After 2017, Samsung could choose to end some of the provisions of the agreement, but the company could also extend licensing out for a total 10-year term.

Monetary terms of the agreement between the two companies were not covered in the press release, nor the SEC filing from InterDigital. However, it did say that it would result in royalties for InterDigital over "3G, 4G and certain future generations of wireless products."

Samsung had previously licensed the patents from InterDigital from 2002 to 2012. After the end of the term, InterDigital entered into negotiations with Samsung, but also filed a suit with the United States International Trade Commission (ITC). Samsung had indicated that it would fight the suit at the time.

The suit that InterDigital filed through the ITC in January 2013, named Samsung, Huawei, Nokia and ZTE as companies infringing upon wireless technologies. Products from Samsung, including the Galaxy Note and Galaxy SIII, were said to be infringing up to seven different patents involving 3G and 4G technologies from InterDigital. The company argued that any device connecting to a cellular tower on either standard could be infringing on patents.

by MacNN Staff



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