InterDigital Inc (IDCC)

[F6]

Another news item -- also, IDCC just mentioned on Squawk -- there will probably be more


(COMTEX) A: Ericsson, Interdigital Communications reach settlement in patent suit

STOCKHOLM, Mar 17, 2003 (AFX-UK via COMTEX) -- LM Ericsson AB said it has
reached a settlement with InterDigital Communications Corp in their
long-standing patent infringement suit.

Under the agreement, the companies have entered into a non-exclusive, worldwide,
royalty-bearing license agreement covering all of Interdigital unit InterDigital
Technology Corporation's (ITC) 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," Ericsson said.

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 Dec 2002, Ericsson and Sony Ericsson will pay ITC about 34 mln
usd. For the years 2003 through 2006, Ericsson will pay ITC an annual fee of 6
mln usd for sales of infrastructure equipment. Sony Ericsson will, for the years
2003 through 2006, pay a royalty on each licensed product sold.

In February a Swedish newspaper reported that Ericsson faced up to 40 bln skr in
damages if it lost the patent dispute.

No further details were disclosed.

At 2.05 pm, Ericsson B had reversed 5 pct losses to trade up 1.80 pct at 5.65
skr bid.

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Copyright 2003. AFX News Ltd. All rights reserved.

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