Ericsson and Samsung have signed a deal on global patent licenses, putting an end to a two-year dispute.
 
The Sweden-based vendor said the settlement means that it will receive a one-off sum and ongoing royalty payments from the South Korean manufacturer.
 
Financial details of the settlement have not been revealed.
 
However, the Swedish vendor said that the settlement would boost the vendor's fourth-quarter profit and revenue by €373.3 million and €490 million respectively.
 
The cross-licensing deal covers existing patents for GSM, UMTS and LTE mobile technology for handsets and networks. 
 
"We are pleased that we could reach a mutually fair and reasonable agreement with Samsung. We always viewed litigation as a last resort," said Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson.
 
The agreement between Ericsson and Samsung settles the companies' disputes over standards-essential patents (SEPs), which holders are obliged to license on "fair, reasonable and non-discriminatory" (FRAND) terms.
 
Royalty rates, however, can be negotiated and Ericsson had accused Samsung of not agreeing to its FRAND terms.
 
In late 2012, Ericsson sued Samsung after engaging in what it called two years of failed negotiations to renew a cross-licensing pact.
 
At the time, Ericsson said Samsung was seeking to drastically reduce what it pays to license patents that are essential to meeting global standards.
 
Samsung countersued and Ericsson turned to the US International Trade Commission (ITC) to bar US imports of Samsung products. The ITC was expected to issue its ruling early this year.
 
The agreement ends complaints made by both companies against each other before the ITC as well as the lawsuits before the US court.
 

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