Ericsson And OPPO Ink Global 5G Patent Deal: Royalties and Innovation on the Horizon
Portfolio Pulse from Lekha Gupta
Ericsson (NASDAQ:ERIC) has signed a multi-year global patent cross-license agreement with OPPO, involving essential patents in cellular technologies, including 5G. OPPO will pay royalties to Ericsson, and both companies will collaborate on various 5G-related initiatives. The financial impact of this agreement was already accounted for in Ericsson's Q2 2024 financial results. Despite a recent sales decline, Ericsson's shares are down 2.10% premarket.
July 15, 2024 | 10:21 am
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Ericsson has signed a multi-year global patent cross-license agreement with OPPO, involving essential patents in cellular technologies, including 5G. OPPO will pay royalties to Ericsson, and both companies will collaborate on various 5G-related initiatives. The financial impact of this agreement was already accounted for in Ericsson's Q2 2024 financial results.
The agreement with OPPO is likely to have a positive impact on Ericsson's revenue from royalties and future collaborations in 5G. Although the financial impact is already accounted for in Q2 2024 results, the long-term benefits from this partnership could be significant. The recent decline in share price may be a short-term reaction to other factors, but the partnership itself is a positive development.
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