Ericsson says reaches deal with Samsung to end patent disputes

Reuters

Ericsson, the world's biggest telecom network equipment maker, and Samsung Electronics Co have reached a deal to end all patent-related legal disputes.

Ericsson (Stockholm, Sweden) said on Monday the agreement included an initial payment and royalty payments from Samsung (Seoul, South Korea) for the term of the multi-year license agreement and would affect Ericsson's operating cash flow at the beginning of 2014.

Ericsson said the settlement would impact its fourth quarter sales by 4.2 billion Swedish crowns ($652 million) and net income by 3.3 billion Swedish crowns ($512 million).

"This agreement allows us to continue to focus on bringing new technology to the global market and provides an incentive to other innovators to share their own ideas," said Kasim Alfalahi, Ericsson's Chief Intellectual Property Officer.

($1 = 6.4421 Swedish crowns)

(Reporting by Mia Shanley)

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