Inside information: Nokia concludes smartphone patent license
renewal cycle
Nokia CorporationInside information8 February 2024 at 16:15
EET
Inside information: Nokia concludes smartphone patent
license renewal cycle
- Nokia Technologies has signed its last major smartphone
agreement that remained under negotiation. This is Nokia’s seventh
major smartphone patent license agreement in the past thirteen
months
- Nokia Technologies expects significant catch-up payments in Q1
2024 and now has an annual net sales run-rate of approximately EUR
1.3 billion
- Nokia’s licensing business has long-term stability with no
major smartphone license agreements expiring for a number of
years
Espoo, Finland – Nokia today announced it has signed its last
remaining major smartphone patent license agreement and concluded
its smartphone patent licence renewal cycle which began in 2021.
Nokia Technologies – Nokia’s licensing business – will now enter a
period of stability with no major smartphone agreements expiring
for a number of years.
Today’s announcement follows recent agreements with Honor, OPPO,
vivo, and the new agreement now concluded with a company whose
license expired earlier, as well as the license agreements signed
with Apple and Samsung last year, and Huawei in December 2022.
As a result, Nokia Technologies currently has an annual net
sales run-rate (contracted recurring net sales) of approximately
EUR 1.3 billion, excluding catch-up net sales. In addition to the
remaining addressable smartphone market, it will continue to focus
on opportunities to grow the annual net sales run-rate through
patent licensing in areas such as automotive, consumer electronics,
IoT and multimedia, to reach a run-rate of EUR 1.4-1.5 billion in
the mid-term.
Considering the many agreements Nokia Technologies has signed in
the quarter, its Q1 net sales are expected to benefit from
significant catch-up net sales in excess of EUR 400 million related
to prior periods of non-payment. This is consistent with the
assumption that Nokia provided in its Financial Report for Q4 and
Full Year 2023 for Nokia Technologies to generate at least EUR 1.4
billion of operating profit in 2024 including the benefit of catch
up net sales.
Jenni Lukander, President of Nokia Technologies, said: “We are
delighted to have successfully completed our smartphone license
renewal cycle. These seven major agreements demonstrate the
strength of Nokia’s patent portfolio and the smartphone industry’s
continued reliance on Nokia’s technology in their devices.
Conclusion of our smartphone license renewal cycle will enable us
to focus on growing our licensing run-rate in new areas. We have
already made significant progress in these growth areas and have a
strong pipeline of future opportunities.”
Nokia’s industry-leading patent portfolio is built on around
€150 billion invested in R&D since 2000 and is composed of
around 20,000 patent families, including over 6,000 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 can
license and use these technologies without the need to make their
own substantial investments in the standards, fueling innovation
and the development of new products and services for consumers.
About NokiaAt Nokia, we create technology that
helps the world act together.
As a B2B technology innovation leader, we are pioneering
networks that sense, think and act by leveraging our work across
mobile, fixed and cloud networks. In addition, we create value with
intellectual property and long-term research, led by the
award-winning Nokia Bell Labs.
Service providers, enterprises and partners worldwide trust
Nokia to deliver secure, reliable and sustainable networks today –
and work with us to create the digital services and applications of
the future.
Inquiries:
Nokia CommunicationsPhone: +358 10 448 4900Email:
press.services@nokia.comKaisa Antikainen, Communications
Manager
Nokia Investor RelationsPhone: +358 40 803 4080Email:
investor.relations@nokia.com
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