Tech Giants Ericsson And Huawei Pioneer The Future With Renewed Patent Pact In 5G Era

Ericsson ERIC renewed a multi-year global cross-licensing deal with Huawei covering patents for their products, comprising 3G, 4G, and 5G cellular technologies. 

The agreement terms cover the companies' sales of network infrastructure and consumer devices, granting them a global access to each other's patented and standardized technologies.

With the current portfolio of IPR licensing contracts, ERIC expects 2023 IPR licensing revenues to be about SEK 11 billion.

Going forward, the company planned to boost its IPR revenues through such agreements and expansion into additional licensing areas.

Last month, ERIC tapped Intel Corp INTC to leverage 18A process and manufacturing technology for its future next-generation optimized 5G infrastructure.

With such investments, ERIC has boosted the value of its granted patent portfolio of over 60,000.  

The company reported Q2 FY23 sales growth of 3% Y/Y to SEK 64.4 billion ($6.125 billion), in line with the consensus of $6.130 billion and adjusted EPS of $0.07, beating the consensus of $0.04.

Price Action: ERIC shares closed lower by 1.41% at $4.89 on Thursday.