The company said the deal “significantly broaden[s] Unwired Planet’s Mobile Internet-focused portfolio,” including 753 U.S. issued patents related to 2G, 3G and LTE technologies. Ericsson will also contribute 100 additional patent annually to Unwired Planet from 2014 through 2018. Terms call for Unwired Planet to compensate Ericsson with certain ongoing rights in future revenues generated from the enlarged patent portfolio. Unwired Planet will also grant Ericsson a license to the Company’s enlarged patent portfolio
Unwired Planet disclosed in an 8-K filing with the SEC that the patent portfolio involved in the transaction includes 825 patent families, with 1,922 issued patents and 263 patent applications “covering technology utilized in telecommunications infrastructure including signal processing, network protocols, radio resource management, voice/text applications, mobility management, software, hardware and antennas.”
Unwired Planet will pay Ericsson a cut of the license revenue it generates from the portfolio, including 20% of the first $100 million; 50% of revenues between $100 million and $500 million; and 70% for amounts above $500 million.
The deal notes that in a change of control at Unwired Planet, Ericsson will have the right to terminate the deal and receive a cash payment…or not.
q4 conference call should shed some light on ALU's patent revenue focus, recalling they hired a "hitter" with experience Craig Thompson to turn into BIG CASH FLOW and with more than 29,000 issued patents, the new unit will be key in Alcatel-Lucent's ... Mr. Thompson will oversee the company's world-class patent portfolio.... news is coming.