Categories: 5GMobilityNetworks

Ericsson Expects $1bn In IP Revenue After Huawei Deal

Swedish telecoms equipment maker Ericsson has said it expects to report 11 billion Swedish crowns ($1bn, £800m) in intellectual property licensing income following the renewal of a patent cross-licensing agreement with Shenzhen, China-based Huawei.

The companies renewed a multi-year deal under which the firms pay one another royalties for the use of the other’s patents in technologies such as smartphones and 5G base stations.

“With the current portfolio of IPR licensing contracts, Ericsson estimates the full-year 2023 IPR licensing revenues to be approximately 11 billion crowns,” the firm said in a statement.

Huawei said the cross-licensing agreement announced on Friday would cover patents essential for 3G, 4G and 5G worldwide, adding that the deal was long-term without giving a specific time frame.

Patent deal

“As major contributors of standard essential patents (SEPs) for mobile communication, the companies recognise the value of each other’s intellectual property, and this agreement creates a stronger patent environment,” said Huawei intellectual property department head Alan Fan.

“This agreement is the result of intensive discussions that ensured the interests of both patent holders and implementers are served fairly.”

Ericsson chief intellectual property officer Christina Petersson said the deal demonstrates the firms’ commitment “that intellectual property should be respected and rewarded, and that leading technological innovations should be shared across the industry”.

In previous years Huawei paid more in licensing rights than it was paid, due to a prominent position in smartphone sales in China and elsewhere.

US sanctions

After the US placed the company on the national security Entity List in 2019 those sales plunged, and Huawei brought in more from royalties than it spent for the first time in 2021.

Huawei said it received about $560m from patent royalties last year.

The company has recently faced increased pressure in the European Union as countries such as Spain, Sweden and Germany bring in restrictions affecting it and other Chinese firms.

Matthew Broersma

Matt Broersma is a long standing tech freelance, who has worked for Ziff-Davis, ZDnet and other leading publications

Recent Posts

Tech Groups Call On US DoJ To Investigate YouTube Monopoly

Open letter urges US Department of Justice to investigate Alphabet's YouTube for alleged domination of…

5 hours ago

EU To Impose Tariffs Up To 38 Percent On Chinese EVs

European Commission investigation provisionally concludes China offers unfair subsidies to its EV makers – tariffs…

7 hours ago

CIOs Admit AI Is Investment Priority, Just Ahead Of Security, Cloud

Challenges to enterprise growth ambitions include geopolitical issues, inflation and economic uncertainty, Expereo's IDC report…

9 hours ago

Nvidia Completes Stock Split To Make Shares More Affordable

The 10-for-1 stock split at Nvidia has taken place, after the meteoric share price rise…

12 hours ago

Elon Musk Drops OpenAI Lawsuit, Threatens Apple Ban

Surprising twist by Elon Musk after he ditches lawsuit against OpenAI, and also threatens to…

13 hours ago