On May 7, Beijing time, Ericsson said it had reached a multi-year agreement with Samsung on global patent licensing, ending a dispute that hit Ericsson's revenue in the first quarter.

Ericsson said in a statement that the cross license agreement covers network infrastructure and mobile phone sales starting January 1, 2021. Ericsson expects revenue from patent licensing in the second quarter to be between SEK 2 billion (US $237.3 million) and SEK 2.5 billion.

With the settlement agreement reached, the two sides will withdraw the complaints filed with the U.S. International Trade Commission and the ongoing litigation in many countries. Both parties refused to disclose the terms of the agreement on the ground of confidentiality.

In the first quarter of this year, Ericsson's patent licensing revenue fell to SEK 800 million from SEK 2.5 billion in the same period last year. Last December, Ericsson sued Samsung in the United States for patent fees.

Ericsson said its patent revenue continued to be affected by a number of factors, such as expired license agreements waiting to be renewed, geopolitical impact on the mobile phone market, the transition from 4G to 5g, and possible exchange rate effects in the future.

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