Ericsson Sues Lenovo and its Motorola Business For Patent Infringement

Ericsson confirmed that it is taking legal action against China's Lenovo and Motorola subsidiary over patent licensing.

Ericsson has brought many legal actions against Lenovo and its subsidiary Motorola Mobility for violating its patents. Lenovo and Motorola Mobility are using their technology without a licence, according to Ericsson, who claimed that despite their best efforts, they have yet to agree on the terms and scope of a licence. Ericsson's annual investments in R&D of about $4 billion have contributed to their leading global position in 5G and a leading 5G patent portfolio. The potential for fair recompense through patent licencing is crucial to secure new investments in innovation that benefit their customers and consumers globally.

The business declined to offer any other details. A Lenovo official from China did not immediately answer Light Reading's inquiries.

The actions are not unexpected. Companies in the 5G sector, huge participants like Ericsson, often sue one another for patent infringement to recoup licensing fees.

Ericsson just reached a sizable settlement with Apple, the manufacturer of the iPhone. The two businesses did not disclose the terms of their patent licensing agreement. Still, financial experts at Raymond James predicted that the new arrangement would see Apple paying Ericsson licencing fees of about $100 million every three months.

In the second quarter of this year, Ericsson recorded revenues from patent licencing of approximately $289 million, up from $132 million in the comparable year. The corporation cited its contract with Apple as the cause of the rise.

Ericsson declared that they launched another important 5G licencing agreement with a device vendor, further validating their IPR portfolio strength, positioning us well for continued IPR growth as they licence vendors previously unlicensed for 5G, the business stated in its results release.

Ericsson stated 2017 that it would charge $2.50 to $5 for its patents for every 5G phone. That approximately equates to what its competitors are looking for. For instance, Huawei said their patent fees average $2.50 per 5G phone. Nokia requests $3.50. In addition, Qualcomm anticipates earning up to $16.25 in royalties for each 5G phone sold.

In a recent survey by LexisNexis IPlytics, the company ranked China's Huawei top overall in evaluating the value of 5G patents. Qualcomm, Samsung, Ericsson, and Nokia were in that order. Apple ranked No. 12 and Lenovo No. 13, respectively.