Ericsson and OPPO have entered into a multi-year global patent cross license agreement. This agreement is a comprehensive cross license covering patents essential to cellular technology standards, including 5G. This development will see OPPO, a prominent global smartphone vendor with a strong presence in developing markets, making royalty payments to Ericsson.
Beyond the patent licensing, Ericsson and OPPO are set to embark on a series of collaborative projects centered around 5G technology. These projects will include device testing, customer engagements, and a variety of marketing activities, signaling a deeper business cooperation between the two technology giants.
Christina Petersson, Chief Intellectual Property Officer at Ericsson, highlighted the significance of this agreement: "This important royalty bearing license agreement with OPPO allows Ericsson to further invest in fundamental communications technologies. The license confirms that the patent licensing industry works and is proof that a vast majority of license agreements are based on business negotiations. It also reflects the mutual respect for each other’s patent portfolio. We now look forward to growing Ericsson’s IPR revenues with additional 5G agreements and expansion into additional licensing areas, such as IoT and consumer electronics."
This agreement aligns with the global practice where companies utilizing cellular 3GPP standards like 5G must secure license agreements with patent holders to avoid patent infringements and ensure compensation for R&D investments. This practice ensures that innovation continues to be rewarded and fostered across the industry.
The financial implications of this agreement have already been integrated into Ericsson’s Q2 2024 financial results, marking a positive outlook for the company's revenue stream from intellectual property rights (IPR). With over 60,000 granted patents, Ericsson’s portfolio is a testament to its leadership in the 5G domain, bolstered by annual R&D investments exceeding SEK 45 billion.
For decades, Ericsson has been at the forefront of contributing to 3GPP and the development of global mobile standards. This latest agreement with OPPO not only strengthens Ericsson’s patent portfolio but also reinforces its position as a leading 5G vendor.
Ericsson has been a pioneer in communication technology for nearly 150 years, providing high-performing networks that connect billions of people daily. With a commitment to innovation, Ericsson continues to shape the future of mobile communication and connectivity for service providers and enterprises worldwide.
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