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Samsung reaches $500m patent licensing agreement with InterDigital

Samsung and InterDigital have signed off on a $500 million [£298 million] patent license agreement that will put a stop to all litigation between the two firms.

Related: Huawei settles InterDigital 3G patent dispute out of court

The deal, which has been reported by TechCrunch, means that all active and pending cases between the two have been called off and the agreement covers all devices manufactured between January 2013 and 2017.

“The royalty-bearing license agreement sets forth terms covering the sale by Samsung of 3G, 4G and certain future generation wireless products,” read a statement from InterDigital.

In terms of the figure of $500 million [£298 million], it is an estimate made by TechCrunch based on revenue guidance made in the past by InterDigital and multiplied by the 15 quarters that the deal covers.

Samsung was the key pin that InterDigital targeted in a collective dispute that it filed with the International Trade Commission back in January 2013 asking for import bans on products that had violated its patents including those made by Huawei, Nokia, ZTE, and Samsung.

“We are very happy to have resolved the licensing dispute with Samsung on mutually agreeable terms. This agreement with Samsung shows how our longstanding patent licensing framework and process can lead to effective, productive discussions and eventual resolution on fair and reasonable terms,” William J. Merritt, president and CEO of InterDigital said in a statement.

In the past InterDigital has signed patent licensing deals with the likes of BlackBerry and even Apple with which it has a $56 million [£33.4 million] deal related to the iPhone and that expires next month with a new agreement likely to be imminent.

InterDigital, which is referred to as a patent troll by various parties, has around 21,000 patents in its vast library and is criticised due to the fact that none of them are used in direct product deployments manufactured by the firm itself.