Monday, March 31, 2003 3:33:31 PM
The Ericsson and Sony Ericsson license agreements apply to 2G GSM/TDMA and 2.5G GSM/GPRS/TDMA infrastructure and terminal unit products.
Accordingly, one or more additional agreements with a designated leading manufacturer will be necessary, in the absence of agreement between ITC and Nokia, to fully define the full scope of Nokia?s obligations under its patent license agreement.
The starting point for calculating Nokia?s royalty obligation will be January 1, 2002. In addition, Samsung elected to apply its MFL provision to ITC?s patent license agreement with Nokia as regards Samsung?s 2G and 2.5G TDMA-based products. Therefore, beginning in 2002 Samsung?s royalty rate should be determined in the same manner as Nokia?s royalty rate is determined. There is no assurance that either Nokia or Samsung will agree with ITC as to the applicability of the licensing terms between ITC and Ericsson and Sony Ericsson. The MFL terms include provisions for a period of review, negotiation, and dispute resolution with regard to the determination of royalty obligations of Nokia and Samsung.
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