Following a disappointing financial second quarter, Ericsson has signed a multi-year global patent cross-license agreement with Oppo, a Chinese consumer electronics manufacturer. This agreement covers patents essential to standards for cellular technologies, including 5G.
Oppo, established in 2004, has expanded its business to over 60 countries and regions worldwide. Initially focusing on media players, Oppo transitioned to feature phones and then into the mobile internet. In recent years, the company has focused on providing internet of experience services such as smart glasses, foldable smartphones, flip phones, and standard smartphones.
In addition to the cross-license agreement, the deal between Oppo and Ericsson will involve cooperating on various 5G projects, including device testing, customer engagements, and marketing activities. Oppo will also make royalty payments to Ericsson.
Ericsson, a leading contributor to 3GPP and global mobile standards development, highlighted the importance of patent licensing in the industry. The company’s strong portfolio of over 60,000 granted patents has been bolstered by its position as a 5G supplier and annual investments in R&D.
Ericsson’s Q2 2024 financial results reflected the benefits of the agreement, with a 7% decline in sales but growth in the North America market area. Despite a net loss for the quarter, Ericsson’s CEO, Börje Ekholm, emphasized the company’s competitiveness and proactive measures to position for long-term success in a challenging market environment.