Samsung Electronics Co. has agreed to pay $19 million to resolve antitrust suit by agreeing to sell 1,095 patents owned by a subsidiary, the first time the South Korean company has paid for a patent sale in nearly 20 years.
The patent sale, which will be finalized within 90 days, is part of an agreement reached by Samsung and antitrust lawyers that covers both Samsung’s semiconductor business and its business in other industries, including healthcare and consumer electronics.
The settlement agreement requires Samsung to pay the same royalty rate as Google Inc. and pay a $1 million antitrust fine, the Justice Department said in a statement.
The Justice Department announced the settlement Thursday after Samsung agreed to a separate $6.7 million fine with the Federal Trade Commission for similar violations.
The agreement requires the Justice, Commerce and FTC agencies to jointly investigate the matter, and the parties to work together to enforce the agreement.
The deal will also allow Samsung to “reduce its dependence on foreign competitors,” the Justice department said.
The antitrust lawsuit, filed in August 2016, was brought against Samsung by two groups of plaintiffs in the Southern District of New York.
One group of plaintiffs alleged that Samsung had improperly sold patents to foreign companies and that Samsung retaliated against the plaintiffs by using unfair competition to undercut them.
In a statement, Samsung said the company has “no plans to take any actions that would disrupt or degrade the interoperability and value of our products.”
Samsung Electronics Co., the world’s largest maker of mobile phones and computers, is known for its innovative designs and manufacturing processes.
In addition to its mobile devices, it also makes television sets and televisions.