Chinese giant technology company Huawei renewed its patent with the rival company Ericsson. (Photo : Reuters)
Chinese giant technology company Huawei renewed its patent with the rival company Ericsson.
According to Zacks, these two big companies are tied up to share wireless technology between their networking equipment. According to the terms mentioned under the cross licence agreement, both companies will be able to implement and access each other's Standard Essential Patents (SEP) for UMTS, GSM and LTE technologies in global arena.SEP holders always have to require offer to the other technological big company's reasonable, fair and non-discriminatory terms. However, both the companies were reluctant to reveal more financial details of this new deal.
As per sources, the renewed agreement shows that the Shenzhen-based Chinese multinational networking company Huawei has to pay on-going royalty to the Swedish multinational corporation Ericsson, based on Huawei's actual sales from these running years onwards.
According to Ding Jianxin, the head of the intellectual property unit of Huawei, the agreement is done under all positive aspire. The innovation and all the intellectual property rights will be protected by the two companies, he added. According to Ding, the compensation should be reasonable for both the parties for accessing and implementing each other's intellectual properties, the China Tech News reported.
Ding also said that the renewed patent will also help both company to promote innovative technology, the sharing and the standardization and the evolution of industry. Industry experts said that this move is a precautionary step to fight the expected competition in the near future, as Nokia Corporation and Alactel Lucent started functioning as a single company.
Meanwhile, the long legal battle between Ericsson and Apple Inc. on the patent issue ended with the signing of global license agreement last month. Thus Ericsson has cleared all the hurdles one-by-one, and rising to the number one position in the global market. Now Ericsson enjoys second position in the Zacks Rank.
