Samsung and wireless-technology provider InterDigital have reached a settlement in their long-running patent dispute involving 3G and 2G technologies, InterDigital announced on Monday.
Under the agreement, Samsung will receive a royalty-bearing licence to cover all of its 3G products until 2013. The agreement, which also resolves a dispute over Samsung's royalty obligations for its 2G sales, will include products built on WCDMA and CDMA2000 standards and related extensions.
The parties did not disclose the terms of the agreement. However, a report in the Wall Street Journal cited a telecom analyst who put a value of $400m (£339) to $500m on the five-year agreement.
According to the Wall Street Journal, the settlement announcement came on the eve of a decision by the US International Trade Commission on whether it would ban imports of Samsung 3G BlackJack II and Instinct mobile phones. The report noted that Samsung sold 87 million 3G phones between 2004 and the middle of 2008.
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"The agreement is consistent with our long-term strategic plan, and reflects well on the strength of our patent portfolio and our ability to design flexible deal structures," William Merritt, InterDigital chief executive, said in a statement.
Samsung has 45 days to select one of two payment options, which will then be incorporated into the agreement. Once InterDigital receives the first payment installment in early 2009, the parties will remove all outstanding litigation between them.
