Ericsson And Huawei Extend Their Global Patent License Agreement

Ericsson (ADR) ERIC announced Thursday morning it has reached an agreement with Huawei to extend their global patent cross license agreement. As part of the agreement, both companies will continue accessing and implementing each other's standard essential patents and technologies globally. Huawei will continue making on-going royalty payments based on actual sales to Ericsson from 2016 onwards. The cross license agreement covers the 2 companies' wireless standard-essential patents, including GSM, UMTS and LTE cellular standards. Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson, says: "We are happy to see an extension of the agreement. The extension shows our commitment to drive innovation and industry development. In the future, everyone and everything will be connected through the Networked Society and Internet of Things. Our role is to drive this transformation, opening up new ways to innovate, to collaborate, and to empower people, business, and society". Shares of Ericsson were trading slightly higher by 0.11 percent at $9.11 after Thursday's opening bell.