Swedish telecom gear maker Ericsson has accused Samsung of violating its contractual commitments by failing to adhere to various licensing patent agreements.
In a lawsuit filed at District Court in Texas in the US, Ericsson alleged that the South Korean tech giant failed to adhere to the fair, reasonable, and non-discriminatory (FRAND) terms and conditions.
Samsung’s FRAND commitment is a contract between Samsung and European Telecommunications Standards Institute, Ericsson claimed in the complaint.
“The application of the FRAND commitment in this instance is in relation to various global cross-licences that cover both parties’ patents for 2G, 3G, 4G, and 5G cellular standards,” reports ZDNet.
“Samsung’s breach has caused Ericsson to suffer actual damages, such as Ericsson’s costs and expenses in pursuing futile negotiations with Samsung in an amount to be determined at trial. In addition, Ericsson is further entitled to obtain specific performance under French law,” the lawsuit read.
Samsung was yet to react on the Ericsson lawsuit.
The Swedish company said it is seeking to attain a declaration that it has complied with its FRAND commitment, and that Samsung has not.
With several of the licensing deals set to expire next year and negotiations still ongoing, Ericsson said the payment of IP royalties may be delayed.
“In the event of delayed royalty payments and the potential costs of litigation, Ericsson predicted its operating income could decline by SEK 1-1.5 billion per quarter from 2021 onwards”.
Samsung is currently one of the leading 5G players in the world.
Samsung Electronics dominated the 5G smartphone market in western Europe in the first half of the year.
According to market researcher�Strategy Analytics, Samsung captured an 88 per cent market share of all 5G smartphones shipped in Western Europe in the first six months of the year.
“Samsung today is the clear 5G leader across Western Europe, due to a strong portfolio of premium Android models, such as the Galaxy S20 5G and A90 5G,” said Ken Hyers, a director at Strategy Analytics.