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Ericsson grants Huawei patent license agreement for mobile technology

BEIJING-Ericsson has granted Huawei Technologies a worldwide, non-exclusive, non-transferable patent license for its W-CDMA/UMTS mobile telephony technology, allowing Huawei to develop, manufacture and sell infrastructure and subscriber equipment using Ericsson’s technology.

Huawei Technologies is one of China’s leading communications equipment vendors. In return, Huawei will pay royalties to Ericsson and provide a reciprocal license.

Torbjorn Nilsson, senior vice president marketing and strategic business development for Ericsson, said his company is committed to fully supporting and cooperating with local Chinese vendors to accelerate the development of third-generation (3G) products and facilitate market growth in China.

In separate news, Ericsson finalized the transfer of its majority stake in Ericsson Panda Mobile Terminals, a joint venture based in Nanjing, to Microcell. Ericsson wants to streamline its production facilities in China and achieve a more efficient use of resources.

Because Ericsson is no longer a stakeholder, the Nanjing-based joint venture will be renamed.

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