Lenovo and Ericsson have announced they have entered into a global patent cross-licensing agreement regarding their portfolios of 4G and 5G standard essential patents (SEPs), settling all pending global litigation between them.

Ericsson said that as part of the settlement “all ongoing lawsuits and administrative proceedings filed by both companies in several countries, including the actions pending before the United States International Trade Commission (ITC), will be withdrawn”.

It added that the financial impacts were expected to be recognised “from the second quarter of 2025, reflecting the partial settlement”.

“The remaining patent licensing dispute will be fully resolved through an arbitration process between the parties,” the company said.

As per a statement from Lenovo, which was represented in the matter by Kirkland & Ellis, the parties will enter into binding arbitration to determine the final terms of the new agreement.

Taylor Ludlam, Lenovo’s vice president and chief intellectual property and litigation officer, said: “We are pleased to have reached this resolution with Ericsson, resolving our global cross-licensing dispute.”

The dispute over licensing 4G and 5G SEPs on terms that are considered fair, reasonable and non discriminatory has played out on both sides of the Atlantic. It began in the US in late 2023, when Ericsson filed patent lawsuits at the Eastern District Court of North Carolina, followed by complaints to the US ITC. 

Lenovo responded by filing suit in the UK High Court. The closely-watched case ended up at the UK Court of Appeal in February, with a key ruling that Lenovo was entitled to an interim licence for the 4G and 5G patent portfolio.

Just last week Ericsson, represented by Taylor Wessing and Pinsent Masons, asked the UK Supreme Court to intervene and review the Court of Appeal judgment.

There have also been proceedings in courts in Brazil and Colombia.

Ericsson says the value of its patent portfolio of more than 60,000 granted patents was strengthened by its leading position as a 5G vendor.

It added: “The company is confident of growing its IPR revenues with new 5G agreements and by expanding into other licensing areas long term.”