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Ericsson Looks to Exercise its Patent Licensing Power

November 9, 2011

Following the recent announcement of the deal to sell its stake of SonyEricsson to Sony for 1.05 billion euros, Ericsson on Nov. 9 said in a press release that it intends to start leveraging the power of its wireless patent portfolio to generate income.

The company said in its press release that, following the divestment of SonyEricsson, “patents and licensing will become a key revenue area with growth opportunities.” The press release said that industry fundamentals “remain strong” and that Ericsson “expects coverage build-outs of mobile broadband in the coming years.”

Ericsson’s press release continued:

The massive increase in mobile traffic is driven by usage in highly populated areas and 60% of the traffic growth up to 2016 will be generated in metro and urban areas. Today, Ericsson has a 43% market share in cities, based on the installed base of mobile networks in the world's 100 largest cities.

Any device with cellular connectivity needs a license to Ericsson's patents. With 27,000 granted patents covering a wide range of technologies, from wireless access to WLAN [wireless local area network] and the whole ICT [information and communication technology] value chain, Ericsson is today a net receiver of royalties and has some 90 license agreements. With new devices and other industries entering the world of connectivity, Ericsson targets to grow its IPR revenues above the SEK [Swedish Krona] 4.6 b net revenue generated in 2010.


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