By Adedapo Adesanya
Nokia has announced the signing of a new patent cross-license agreement with technology giant, Apple, which will replace the current license due to expire at the end of 2023.
The terms of the agreement remain confidential between the parties but will cover Nokia’s fundamental inventions in 5G and other technologies and see it receive payments from the iPhone and iPad maker for a multi-year period.
The agreement reflects the strength of Nokia’s patent portfolio, decades-long investments in research and development (R&D) and contributions to cellular standards and other technologies.
Speaking on this, Ms Jenni Lukander, President of Nokia Technologies, said: “We are delighted to have concluded a long-term patent license agreement with Apple on an amicable basis.”
“The agreement reflects the strength of Nokia’s patent portfolio, decades-long investments in R&D, and contributions to cellular standards and other technologies,” she added.
Nokia, in a statement on Tuesday, said it expects to recognize the revenue related to this new patent license agreement starting in January 2024.
The agreement is consistent with the assumptions Nokia has disclosed in the commentary with respect to Nokia Technologies’ long-term outlook in its Financial Report for the first quarter issued on April 20, 2023.
Nokia’s industry-leading patent portfolio is built on more than €140 billion invested in R&D since 2000 and is composed of around 20,000 patent families, including over 5,500 patent families declared essential to 5G.
Nokia contributes its inventions to open standards in return for the right to license them on fair, reasonable and non-discriminatory (FRAND) terms.
Companies like the iPhone manufacturer can license and use these technologies without the need to make their substantial investments in the standards, fueling innovation and the development of new products and services for consumers.
Modupe Gbadeyanka