SWEDISH TELECOM FIRM Ericsson announced plans to sue Samsung for alleged patent infringement today, saying it has been unable to strike a deal with the Korean mobile phone vendor.
Ericsson accused Samsung of infringing its patents on technologies "essential to several telecommunications and networking standards", adding that the Galaxy S3 maker has refused to sign a Fair, Reasonable and Non-Discriminatory (FRAND) licensing agreement after two years of negotiations between the two firms.
"Ericsson has concluded that it has no option other than legal action after negotiations have not been successful since Samsung has refused to take a license on FRAND terms," the company said in a statement.
Kasim Alfalahi, chief intellectual property officer at Ericsson added, "By the end of 2012 there will be approximately 6.6 billion mobile subscriptions in the world.
"The sharing of technology in the telecom industry is one of the main drivers behind this development. The telecom ecosystem builds on fair and reasonable terms that have created an attractive global mass market for mobility and broadband with Ericsson as a main contributor."
"Ericsson has over 30,000 patents and more than 100 license agreements with all major players in the industry. Ericsson has tried long and hard to amicably come to an agreement with Samsung. We have turned to litigation as a last resort."
Samsung told The INQUIRER that a deal has not been made because of the higher royalties Ericsson is asking for.
A spokesperson said, "Samsung and Ericsson have previously negotiated and entered licensing deals. Now that the deal has to be renewed, we have faithfully committed ourselves to conducting fair and reasonable negotiations with Ericsson over the past two years, but this time Ericsson has demanded prohibitively higher royalty rates for the same patent portfolio.
"As we cannot accept such extreme demands, we will take all necessary legal measures to protect against Ericsson's excessive claims." µ