Ericsson is to receive 1.05 billion euros($1.45 billion) in cash for its 50 percent share of the venture, which was set up in 2001. It initially thrived with an array of camera and music phones, but later lost out in the smartphone race.
"We can more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment," Sony Chairman and Chief Executive Sir Howard Stringer said in a statement.
The deal provides Sony with a broad intellectual property (IP) cross-licensing agreement covering all the Japanese company's products and services, and ownership of five essential patent families relating to wireless handset technology.