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Ericsson settles patent dispute with Samsung

Ericsson has settled a long-running patent dispute with South Korean electronics giant Samsung, the Swedish telecom equipment maker said on Monday, prompting a rise in Ericsson shares on the Stockholm exchange.

Ericsson settles patent dispute with Samsung

Ericsson said in a statement that the agreement included an initial payment which would boost the company's fourth-quarter profit and revenue by 3.3 billion kronor ($511 million) and 4.2 billion kronor respectively.

"Ericsson and Samsung have reached an agreement on global patent licenses between the two companies," the Swedish company said.

"The cross license agreement covers patents relating to GSM, UMTS, and LTE standards for both networks and handsets."

The multi-year licence deal also guarantees royalty payments from Samsung to Ericsson, according to the Swedish company.

In November 2012, Ericsson filed two patent infringement lawsuits that came to an end with the deal: one at a US court in Texas and one at the US International Trade Commission.

"We are pleased that we could reach a mutually fair and reasonable agreement with Samsung. We always viewed litigation as a last resort," chief Intellectual Property officer Kasim Alfalahi said.

Samsung also announced on Monday it had signed another long-term cross-licence deal with Google in order to prevent potential patent disputes in the future.

According to the South Korean group, the agreement would cover the firms' existing patents and those filed over the next ten years.

News of the patent settlement pushed Ericsson shares higher on Monday following, with the company's stock price up two percent ten minutes following the opening of trading on the OMX exchange in Stockholm.

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SAMSUNG

Berlin tech fair gives glimpse into future

Gadget geeks are descending on Berlin for one of the world’s biggest tech fairs which is promising more world premieres than ever before.

Berlin tech fair gives glimpse into future
Photo: DPA

At the launch of the IFA consumers electronics fair on Wednesday, South Korean electronics giant Samsung unveiled its hotly anticipated smartwatch the Galaxy Gear. It allows users to make calls, receive texts and emails, and take photos.

JK Shin, head of Samsung’s mobile division, predicted the Galaxy Gear – effectively a mobile you wear on your wrist – would become “a new fashion icon through the world”.

The new smartwatch has a touch screen of around four centimeters in a brushed-steel mount and wrist strap in six different colours. Contrary to rumours, it does not have a flexible screen.

With its arch rival Apple still to roll out its much rumoured “iWatch”, and the likes of Microsoft and Google not exhibiting at IFA, the South Korean giant has the field more or less to itself.

Unlike its competitors, the Samsung device allows users to make calls without taking their phone out of their pocket – instead, they can hold their wrist up to their ear and use the built-in speaker and microphone.

CLICK HERE to see the top five gadgets at the IFA

The first two days of the fair on Wednesday and Thursday, were reserved for the press, with doors to the public opening on Friday through to next Wednesday.

It will display the latest state-of-the-art gadgets on 145,000 square metres of exhibition space at the Berlin ExpoCenter.

Last year it attracted 240,000 visitors and this year smartphones and tablet computers are certain to be a big draw for visitors, as the dividing line between the two becomes more and more blurred, as is demonstrated by growth of so-called “phablets”.

Electronic household goods, such as state-of-the-art kitchen devices – from ceramic hot plates to refrigerators – as well as the latest in flat-screen television sets will also be on display.

Sales of flat-screen TVs are beginning to fall off in Germany, so manufacturers are looking to ultra-HD devices to spur consumer demand.

Catering to the growing trend to inter-connect all gadgets, Sony will present a new camera lens that can be linked up to a smartphone to transform into a powerful camera.

Organizers boast there will be more world premieres at this year’s IFA than ever before.

AFP/The Local/tsb

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