Samsung recently agreed to pay Ericsson more than $650 million in past royalty fees, according to a report from Reuters Monday. The agreement will end what was an ongoing patent licensing argument between the two firms, though Samsung will also need to pay “years of royalties,” to Ericsson, Reuters explained.
The two firms started arguing in 2011 after Samsung’s previous licensing agreement with Ericsson expired. The South Korea tech company was reluctant to enter into a new agreement when it decided Ericsson was demanding an unfair amount of money to do so. It appears that Samsung will continue to license the tech moving forward.
The two firms had argued over licensing patents related to transmitting data over a network more efficiently, touchscreen technology and voice transmission over wireless networks, according to the news outlet. The amount of past royalties was not revealed by either company, though Ericsson expects to see drastic changes to its balance sheet during the quarter as a result of the bulk $650 million payment.