Ericsson plans to increase its patent revenue

Ericsson, a Swedish telecommunications equipment manufacturer, is reorganizing its patent division. This will allow the company to increase its revenue from licensing and patent sales.

At the same time, it became known that Ericsson had changed some of its top managers and their reporting lines. In particular, the head of the licensing division, Kashim Alfalahi, will report directly to Ericsson CEO Hans Vestberg.

Ericsson's patent portfolio includes approximately 27,000 patents. Many of these describe technologies that have become industry standards. The company currently provides access to these patents on FRANT (fair, reasonable, and non-discriminatory terms). This often means that such patents are free to use, but the company using the patented technology must enter into an agreement with the patent holder.

In 2010, Ericsson earned approximately 4.6 billion Swedish kronor, or $663 million, from licensing.