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Samsung signs licensing agreement with Hera Wireless

Samsung has ended a long legal battle with Sisvel Group, by entering in to a licensing agreement with its subsidiary Hera Wireless (“Hera”).

Samsung will now have unfettered use of the patents that allow use of the IEEE 802 WiFi standard, which was already in use across much of Samsung’s range. The use of such patents is essential to access WiFi in large parts of the world, where the IEEE 802 standard prevails.

LG have already entered in to a similar deal, so that the infringement claim against it could be settled. Hera has a tight grip on the patent market for access to the IEEE 802 WiFi standard, and this case is a good example of its strong bargaining position when it comes to licensing.

The patents are categorised as “standard-essential patents”, because they are essential to access national standards, without which a product cannot compete in the marketplace. They are often considered a barrier of entry to technological markets, as the sum demanded up front to enter in to a license is generally prohibitively expensive.

If you have any questions on the above, please do not hesitate to contact the team at McDaniel & Co. on 0191 281 4000 or legal@mcdanielslaw.com.