Ericsson Says LG Won't Pay FRAND Cellular Royalty
Ericsson for “nearly a year” has been trying to negotiate with LG to renew their “reciprocal” license agreements on 2G, 3G and 4G cellular patents, but “these negotiations have been unsuccessful because LG refuses to negotiate in good faith,” Ericsson…
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complained (in Pacer) Monday in U.S. District Court in Sherman, Texas. LG didn't comment. LG refuses to pay a royalty on fair, reasonable and nondiscriminatory (FRAND) terms for a license to Ericsson’s essential patents, and refuses to license its essential patents on FRAND terms to Ericsson, said the complaint. “LG’s refusal to pay a FRAND rate, while continuing its unlicensed use of Ericsson’s essential patents, gives it an unfair competitive advantage over its competitors." Ericsson seeks a court declaration it complied with its FRAND commitments under European Telecommunications Standards Institute rules and that LG “breached” its own FRAND obligations. It also seeks monetary damages and injunctive relief against LG for infringing Ericsson’s U.S. patent (6,633,550) for a radio transceiver on a chip granted in October 2003.