Samsung sued by Ericsson over refusal to renew FRAND patents

One of the phones involved with the Ericsson patents is the Samsung Galaxy S III

According to Swedish tech firm Ericsson, Samsung is currently selling unlicensed mobile devices after a patent deal signed by both firms in 2001 and renewed in 2007, expired. The patents covered by the licensing pact are standards essential patents meaning that they are covered by the FRAND rules which means that licensing deals for these patents should be "fair, reasonable, and non-discriminatory". Ericsson claims that Samsung wants to "renew its license at a rate that is a small fraction of the rate other similarly situated companies pay Ericsson," the filing said. "Samsung's refusal to pay a FRAND rate gives it an unfair competitive advantage over its competitors who have licensed Ericsson's patents." As a result, Ericsson says that Samsung has sold hundreds of millions of unlicensed products including the Samsung Galaxy S III.

Not only has Samsung failed to renew the agreement with Ericsson, it has also refused to allow Ericsson to license any of its FRAND patents in an attempt to get Ericsson to cut the price of its licensing terms. The Swedish firm pointed out how Samsung in court said that all companies using a standard in its products need to agree to FRAND licensing terms, but once it is in this position itself with Ericsson, Samsung refuses to agree to terms. Eleven Ericsson patents are involved in the suit.

The smartphones involved in the battle with Ericsson include the Samsung Galaxy S III, Samsung Galaxy S II, Samsung GALAXY Note, Samsung Galaxy S 4G and the Windows Phone based Samsung Focus and Samsung Focus S.

"Despite nearly two years of negotiations involving the most senior management at both companies, Samsung has refused to renew its expired license to Ericsson's industry leading portfolio of telecommunications patents on the same fair, reasonable, and non-discriminatory (FRAND) terms that Samsung's competitors have previously accepted."

"Samsung has sold hundreds of millions of unlicensed cellular handsets, smartphones, tablet computers, and televisions since the expiration of its license, including its flagship Galaxy S III smartphone"

"At the trial of that matter in the United States District Court for the Northern District of California, Samsung asserted all companies implementing a standard in its products must seek out and accept a license on FRAND terms. Yet, when the tables are turned and Samsung finds itself in the position of being the prospective licensee, it now refuses to license Ericsson's standard-essential portfolio at FRAND rates."-Ericsson