Ericsson probed over licensing charges
Print Edition
Swedish telecom giant Ericsson said yesterday that China’s market regulator was investigating the company over licensing issues as countries and regions around the world prepare to roll out the next generation of mobile networks.
China’s State Administration of Market Regulation is investigating the firm due to complaints against its intellectual property rights licensing in China, a spokesperson for Ericsson said.
The telecom gear maker earns about 7 percent of its revenue in China, according to its 2018 annual report.
Twenty investigators dispatched by China’s market regulator visited Ericsson’s Beijing office on Friday, the Wall Street Journal reported earlier.
“Ericsson is fully cooperating with the investigation,” a spokesperson for the company said, without making further comments.
Ericsson and its US-based competitor Qualcomm own a large portion of patents connected to 3G and 4G mobile networks and devices and have come under fire for their high licensing royalties.
Qualcomm in 2015 agreed to pay a 6.1-billion-yuan (US$$1-billion) fine and said it would modify its business practices in China to end an official anti-trust investigation triggered after it was accused by unnamed industry players of abusing its market dominance to charge high prices.
“At Ericsson, we license our industry-leading patent portfolio on FRAND (Fair, Reasonable and Non-Discriminatory) terms and conditions and have always been committed to these FRAND principles,” a spokesperson said.
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