Ericsson reaches settlement with InterDigital on patent infringement claim

Nordic Business Report, March 17, 2003

NORDIC BUSINESS REPORT-17 March 2003-Ericsson reaches settlement with InterDigital on patent infringement claim(C)1994-2003 M2 COMMUNICATIONS LTD http://www.m2.com

Swedish telecomms solutions provider Ericsson said today (17 March) that it had reached a settlement with the US wireless technology company InterDigital Communiations Corporation regarding a patent infringement suit.

Ericsson said that under the settlement it would pay InterDigital's subsidiary InterDigital Technology Corporation (ITC) a limited fixed amount through 2006 for sales of covered infrastructure equipment.

Ericsson said that its jointly-owned company Sony Ericsson would also pay royalties to ITC through 2006.

Ericsson said that for sales through December 2002 the two companies would pay ITC some USD34m.

For the years 2003 through 2006, Ericsson would pay ITC an annual fee of USD6m for sales of infrastructure equipment while Sony Ericsson would pay a royalty on each licensed product sold during the same period.

One US dollar (USD) is worth approximately 0.63 British pounds (GBP).

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