Samsung, Cisco Agree to Patent Pact
Samsung Electronics Co. (005930.SE) signed yet another agreement to safeguard against future litigation risks over technology patents, this time with Cisco Systems Inc. (CSCO).
The cross-license agreement with Cisco, the biggest maker of networking equipment, gives the two companies access to each other's existing patent portfolios as well as those filed over the next 10 years, covering a broad range of products and technologies, the companies said in a joint statement Wednesday. Financial terms weren't disclosed.
Such deals have become increasingly popular lately, designed less to make money than to give technology companies freedom to develop products without fear of patent suits. They are favored mainly by companies that don't use patents as a primary source of profits.
Samsung and Cisco have been among the most active in licensing activity lately.
For Samsung, the deal hints at the South Korean company's need to remove any potential threats in wireless technology, which is valuable not only in smartphones but increasingly in consumer-electronics devices, cars and other products.
This is Samsung's third major cross-licensing deal this year, highlighting the company's desire to avoid other potentially costly court battles.
Samsung owes Apple Inc. (AAPL) a combined $930 million in damages for violating the Cupertino, Calif.-based company's patents, according to a jury ruling last year in a high-profile case in a U.S. federal court.
In January, Samsung ended a stifling patent dispute against Ericsson (ERIC), the world's largest maker of wireless-network technology, closing a string of lawsuits dating back to 2012. The settlement, which includes an initial payment and continuing royalty payments from Samsung to the Stockholm-based company, relates to an agreement between the two that expired in 2011.
Separately, Samsung signed a long-term cross-licensing pact with Google Inc. (GOOG), reducing the likelihood the two might face each other in future court battles over intellectual property. Samsung and Google have been cooperating closely on mobile devices, with the South Korean company being the dominant maker of smartphones running Android. Some analysts said the deal will help Samsung in developing wearable devices such as Google Glass.
Cisco forged a separate patent deal with Google earlier this week. The company has been particularly outspoken against litigation and other actions by companies that exist only to reap money from patents.
"By cross-licensing our patent portfolios, Cisco and Samsung are taking important steps to reverse the trend and advance innovation and freedom of operation," said Dan Lang, vice president for Cisco's intellectual property, in prepared remarks.
Write to Ming Jeong-Lee at min-jeong.lee@wsj.com and Don Clark at don.clark@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
Samsung Electronics Co. (005930.SE) signed yet another agreement to safeguard against future litigation risks over technology patents, this time with Cisco Systems Inc. (CSCO).
The cross-license agreement with Cisco, the biggest maker of networking equipment, gives the two companies access to each other's existing patent portfolios as well as those filed over the next 10 years, covering a broad range of products and technologies, the companies said in a joint statement Wednesday. Financial terms weren't disclosed.
Such deals have become increasingly popular lately, designed less to make money than to give technology companies freedom to develop products without fear of patent suits. They are favored mainly by companies that don't use patents as a primary source of profits.
Samsung and Cisco have been among the most active in licensing activity lately.
For Samsung, the deal hints at the South Korean company's need to remove any potential threats in wireless technology, which is valuable not only in smartphones but increasingly in consumer-electronics devices, cars and other products.
This is Samsung's third major cross-licensing deal this year, highlighting the company's desire to avoid other potentially costly court battles.
Samsung owes Apple Inc. (AAPL) a combined $930 million in damages for violating the Cupertino, Calif.-based company's patents, according to a jury ruling last year in a high-profile case in a U.S. federal court.
In January, Samsung ended a stifling patent dispute against Ericsson (ERIC), the world's largest maker of wireless-network technology, closing a string of lawsuits dating back to 2012. The settlement, which includes an initial payment and continuing royalty payments from Samsung to the Stockholm-based company, relates to an agreement between the two that expired in 2011.
Separately, Samsung signed a long-term cross-licensing pact with Google Inc. (GOOG), reducing the likelihood the two might face each other in future court battles over intellectual property. Samsung and Google have been cooperating closely on mobile devices, with the South Korean company being the dominant maker of smartphones running Android. Some analysts said the deal will help Samsung in developing wearable devices such as Google Glass.
Cisco forged a separate patent deal with Google earlier this week. The company has been particularly outspoken against litigation and other actions by companies that exist only to reap money from patents.
"By cross-licensing our patent portfolios, Cisco and Samsung are taking important steps to reverse the trend and advance innovation and freedom of operation," said Dan Lang, vice president for Cisco's intellectual property, in prepared remarks.
Write to Ming Jeong-Lee at min-jeong.lee@wsj.com and Don Clark at don.clark@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
