Samsung and InterDigital reach 3G and 2G settlement

Samsung and wireless technology provider InterDigital have reached a settlement in their long-running patent dispute involving 3G and 2G technologies, InterDigital announced Monday.

Under the agreement, Samsung will receive a royalty-bearing license to cover all of its 3G products through 2012. The agreement, which also resolves a dispute over Samsung's royalty obligations for its 2G sales, will also include products built on WCDMA and cdma2000 standards and related extensions.

The parties did not disclose the terms of the agreement, however, a report in the Wall Street Journal cites a telecom analyst who puts a value of $400 million to $500 million on the five-year agreement.

According to the Journal, the settlement announcement came on the eve of a decision by the U.S. International Trade Commission on whether it would ban imports of Samsung 3G Blackjack II and Instinct cellphones. The report notes that Samsung has sold 87 million 3G phones between 2004 to mid-2008.

"The agreement is consistent with our long term strategic plan, and reflects well on the strength of our patent portfolio and our ability to design flexible deal structures," William Merritt, InterDigital CEO, said in a statement.

Samsung has 45 days to select one of two payment options, which will then be incorporated into the agreement. Once InterDigital receive the first payment installment in early 2009, the parties will remove all outstanding litigation between them.