Telecommunications-equipment makers Ericsson AB and Huawei Technologies Co. have agreed to extend a global patent deal that allows the companies to access and implement each other’s standard essential patents and technologies globally.
As part of the renewed agreement, Huawei will make on-going royalty payments based on sales to Ericsson from 2016, but the companies said further details of the agreement are confidential.
Ericsson still expects intellectual property rights revenue of between 13 billion Swedish kronor ($1.52 billion) and SEK14 billion in 2015, up from SEK9.9 billion in 2014. It said it invests about SEK30 billion a year in research and development.
The deal follows hot on the heels of an agreement Ericsson reached with Apple just before Christmas that ended a near year-long dispute and will see Apple pay Ericsson an undisclosed amount, along with ongoing royalties over seven years. Earlier last year Ericsson reached an out-of-court settlement with Samsung Electronics Co. (005930.SE).