Ericsson and ZTE reach an agreement on patent infringement.?[CFP]

Ericsson and ZTE announced yesterday evening that they have signed a global cross-licensing agreement and that both parties have also agreed to drop all pending legislation. In April 2011, Ericsson filed a lawsuit against ZTE over infringement on its GSM and 3G/UMTS wireless technology in Germany, the UK and Italy. ZTE hit back by charging Ericson with patent infringement in China.

The cross-licensing agreement signed by both parities is in line with Fair, Reasonable and Non- Discriminatory (FRAND) royalty compensation and will help ZTE gain access to part of Ericsson’s patents portfolio, Ericsson said.

Ericsson currently possesses more than 27,000 patents and has signed over 90 patent license agreements with a number of manufacturers.

China's business press carried the story above on Saturday.

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