InterDigital Inc (IDCC)

[F6]

(COMTEX) B: Ericsson, InterDigital Communications Corporation reach settlement in patent infringement suit

Mar 17, 2003 (Hugin via COMTEX) -- Ericsson and InterDigital Communications
Corporation (InterDigital), along with its subsidiary InterDigital Technology
Corporation (ITC), today announced a settlement ending the companies'
long-standing patent infringement litigation.

Under the settlement agreement, the companies have entered into a non-exclusive,
worldwide, royalty-bearing license agreement covering all of ITC's patents for
GSM, TDMA (D-AMPS), GPRS, EDGE and PDC. Additionally, all claims asserted in the
patent infringement litigation are dismissed. In exchange, Ericsson will make an
annual payment of a limited fixed amount through 2006 for sales of covered
infrastructure equipment. The royalty payments are part of a settlement of a
dispute and will not significantly affect Ericsson's earnings. The agreements
cover both past and future sales of the relevant products. At the same time,
Sony Ericsson and ITC have entered into a similar license agreement concerning
handsets, under which Sony Ericsson will pay royalties to ITC through 2006. For
sales through December 2002, Ericsson and Sony Ericsson will pay ITC
approximately USD 34 million. For the years 2003 through 2006, Ericsson will pay
ITC an annual fee of USD 6 million for sales of infrastructure equipment. Sony
Ericsson will, for the years 2003 through 2006, pay a royalty on each licensed
product sold.

Ericsson is shaping the future of Mobile and Broadband Internet communications
through its continuous technology leadership. Providing innovative solutions in
more than 140 countries, Ericsson is helping to create the most powerful
communication companies in the world. Read more at http://www.ericsson.com/press
FOR FURTHER INFORMATION, PLEASE CONTACT Investors in the US Glenn Sapadin,
Investor Relations Manager Ericsson Corporate Communications Phone: [phone]
4030 E-mail: [e-mail] Media in the US Kathy Egan, Vice
President Communications Ericsson Corporate Communications Phone: [phone]
4030 E-mail: [e-mail] Investors in Europe Gary Pinkham, Vice
President Investor Relations Ericsson Corporate Communications Phone: +46 8 719
0858 E-mail: [e-mail] Media in Europe Mikael Westmark,
Manager Issues Communication Ericsson Corporate Communications Phone: +46 8 719
62 02, [phone] E-mail: [e-mail]



Copyright (c) 2003, HUGIN AS. All rights reserved.

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SUBJECT CODE: Finance

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