Nokia Corporation has recently signed a new licensing agreement with Honor, a leading smartphone manufacturer in China, for mutual use of patents. The document covers essential inventions in the field of 5G technology and other mobile telecommunications technologies. This is already the fourth key smartphone agreement that Nokia has entered into in the past year. Although the exact terms of the agreement have not been disclosed, this development showcases the strength of Nokia’s patent portfolio and the company’s contributions to cellular standards and technological advancements.
Nokia, once the world’s largest mobile phone manufacturer, possesses a significant patent portfolio that encompasses key technologies necessary for phone production. In fact, it obtained 39% of its operating profits in 2022 from licensing these patents. While this agreement with Honor is a favorable development for Nokia, the company is still engaged in legal disputes with other Chinese manufacturers such as Oppo and Vivo regarding the use of 4G and 5G patents.
“This agreement with Honor is another significant milestone for Nokia. It demonstrates the strength of our patent portfolio and emphasizes our long-standing contributions to cellular standards and other technologies,” said Susanna Martikainen, Director of Mobile Devices Licensing at Nokia. Although Nokia’s licensing agreements continue to expand, the company faces challenges in resolving ongoing legal disputes with other Chinese companies.
Despite the ongoing legal disputes, Nokia remains committed to protecting the value of its patent portfolio. This has resulted in prioritizing patent protection and licensing negotiations over achieving certain sales targets. As a result, Nokia recently announced that it will not meet its sales forecast for 2023, and license renewal negotiations are expected to continue until 2024. The company will release its financial results for the fourth quarter and the entire year 2023 on January 25, 2024.
In summary, the new mutual licensing agreement between Nokia and Honor represents another step in Nokia’s efforts to secure and profit from its extensive patent portfolio. With the increasing demand for 5G technology, Nokia has a strong patent position and favorable conditions for future collaborations and agreements in the smartphone industry.
FAQ:
Q: What technologies does the agreement between Nokia and Honor cover?
A: The licensing agreement covers inventions in the field of 5G technology and other mobile telecommunications technologies.
Q: What are the implications for Nokia?
A: The agreement with Honor is a favorable development for Nokia and highlights the strength of its patent portfolio and its contributions to technological advancements.
Q: What challenges is Nokia currently facing?
A: The company is facing challenges related to ongoing legal disputes with other Chinese smartphone manufacturers.
Definitions:
– Patent portfolio: A collection of patents owned by a company or individual that hold economic value and are legally protected.
– License: The right to use a patent or other intellectual property in exchange for a specified fee or other benefits.
The source of the article is from the blog papodemusica.com