This chapter is covered by the Auditors' Report.
During 2008, various related party transactions were executed pursuant to contracts based on terms customary in the industry and negotiated on an arm’s length basis.
Sony Ericsson Mobile Communications AB (SEMC)
In October 2001, SEMC was organized as a joint venture between Sony Corporation and Ericsson, and a substantial portion of Ericsson’s handset operations was sold to SEMC. As part of the formation of the joint venture, contracts were entered into between Ericsson and SEMC.
Major transactions are as follows:
- License revenues. Ericsson receives license revenues regarding mobile phone platform design from SEMC. Both owners of SEMC, Sony Corporation and Ericsson, receive license revenues for SEMC’s usage of trademarks and intellectual property rights.
- Purchases. Ericsson purchases mobile phones from SEMC to support contracts with a number of customers for mobile systems which also include limited quantities of phones.
- Dividends. Both owners of SEMC, Sony Corporation and Ericsson, receive dividends.
| |
2008 |
2007
|
|
Related party transactions |
|
|
|
License revenues
|
5,856 |
5,743
|
|
Purchases
|
261 |
333
|
|
Ericsson’s share of dividends
|
3,627 |
3,949
|
|
Related party balances |
|
|
|
Receivables
|
1,002 |
932
|
|
Liabilities
|
176 |
204
|
Ericsson does not have any contingent liabilities, assets pledged as collateral or guarantees toward Sony-Ericsson Mobile Communications AB.
Ericsson Nikola Tesla d.d.
Ericsson Nikola Tesla d.d. is a joint stock company for design, sales and service of telecommunication systems and equipment, and an associated member of the Ericsson Group. Ericsson holds 49.07 percent of the shares.
Major transactions are as follows:
- Sales. Ericsson Nikola Tesla d.d. purchases telecommunication equipment from Ericsson.
- License revenues. Ericsson receives license revenues for Ericsson Nikola Tesla d.d.’s usage of trademarks.
- Purchases. Ericsson purchases development resources from Ericsson Nikola Tesla d.d.
- Dividends. Ericsson receives dividends from Ericsson Nikola Tesla d.d.
|
2008 |
2007 |
|
Related party transactions |
|
|
|
Sales |
1,020 |
1,010 |
|
License revenues |
9 |
9 |
|
Purchases |
547 |
506 |
|
Dividends |
227 |
267 |
|
Related party balances |
|
|
|
Receivables |
85 |
103 |
|
Liabilities |
58 |
55 |
Ericsson does not have any contingent liabilities, assets pledged as collateral or guarantees toward Ericsson Nikola Tesla d.d.
Other related parties
Ericsson continued the cooperation with Ericsson’s owners Investor AB and AB Industrivärden in the venture capital vehicle Ericsson Venture Partners.
For information regarding the remuneration of the Group Management, see Note C29, “Information regarding employees, members of the Board of Directors and Management”.
