Ericsson and Lenovo Settle Dispute with Cross Licensing

Thursday, 17 April 2025

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Swedish telecom firm Ericsson and Chinese tech giant Lenovo have resolved a long-running patent licensing conflict by entering into a multi-year, global patent cross-licensing agreement. This marks the conclusion of numerous legal battles initiated in various jurisdictions—cases that had significant implications in the field of intellectual property in Indonesia and beyond.

The dispute centered primarily around FRAND (fair, reasonable, and non-discriminatory) terms for licensing 4G and 5G wireless technology patents. The issue first surfaced in 2023 when Lenovo sued Ericsson in a London court, followed by related litigation in the US District Court in North Carolina, the US International Trade Commission (USITC), Brazil, and Colombia. Under the terms of this new agreement, all active lawsuits and legal proceedings have now been dropped.

Although the financial details of the settlement remain confidential, Ericsson has stated that the financial impact will begin to reflect in its earnings starting from the second quarter of 2025. While the primary issues between the two companies have been resolved, they confirmed that any remaining patent-related matters will be handled through arbitration—a process often overseen by experienced litigation lawyers in Jakarta, Indonesia, and other global legal experts.

Patent Cross-licensing: A Strategic IP Tool

Patent cross-licensing is an agreement where two or more parties allow mutual use of patents they each own. This is particularly common in sectors where companies maintain large patent portfolios, such as telecommunications and technology—fields that often require support from an Indonesia IP consultant or a trusted IP law firm in Indonesia.

Such agreements reduce the risk of costly lawsuits over patent infringement and encourage innovation by allowing companies to access one another’s technologies. This not only boosts R&D but also helps in setting industry standards, ensuring greater compatibility between tools and devices. In practice, firms often turn to a patent law firm in Indonesia for strategic advice when navigating or negotiating such deals.

Consumers also benefit from smoother interoperability, while companies avoid costly delays due to patent disputes. In many cases, support from professionals handling Indonesia patent search, Indonesia trademark registration, or even Indonesia trademark litigation can be crucial to a company’s competitive edge.

However, cross-licensing can also introduce challenges. Startups, especially those without legal backing from an Indonesia copyright law firm, may find it difficult to penetrate markets dominated by companies with existing cross-licensing networks. When misused, such agreements can be a barrier to innovation and fair competition, leading to increased concerns around copyright infringement in Indonesia and similar jurisdictions.

Conclusion

The Ericsson–Lenovo agreement underscores the complexities of global patent law and the importance of strategic licensing. In a dynamic legal landscape, it’s crucial for patent holders—whether multinationals or startups—to fully understand both the opportunities and risks in such agreements.

If your company is facing similar patent licensing issues or other IP-related challenges, the expert team at Am Badar & Am Badar, a trusted intellectual property Indonesia firm, is ready to help. As a leading Indonesia IP consultant, we provide strategic legal solutions ranging from copyright infringement Indonesia and trademark registration Indonesia to litigation lawyers in Jakarta Indonesia.

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