Nokia has announced the signing of a multi-year patent cross-license agreement with vivo, marking the resolution of all pending patent litigation between the two companies across various jurisdictions. As part of the agreement, vivo will make royalty payments to Nokia and catch-up payments to cover the dispute period. The specific terms of the agreement have been kept confidential.
Jenni Lukander, President of Nokia Technologies, highlighted the significance of this agreement, being the sixth major smartphone patent license deal within the past thirteen months. Lukander emphasized Nokia’s substantial contribution to essential technologies in the smartphone industry and how these agreements contribute to the long-term stability of Nokia’s licensing business.
Expressing satisfaction over the collaboration, Lukander noted, “We are delighted to have reached an agreement with vivo which reflects mutual respect for each other’s intellectual property rights. vivo is one of the leading players in the global smartphone industry. We look forward to bringing more innovation to their users around the world through our collaboration.”
Xianwen Xu, General Manager of Legal Affairs Department at vivo Mobile Communication Co., Ltd., echoed the sentiment, stating, “We are pleased to have reached a global cross-license agreement with Nokia. Signing the agreement reflects the mutual recognition and respect for each other’s patent value in cellular technology and it also plays a significant role in fostering a positive development environment within the industry.”
The agreement aligns with Nokia’s disclosed assumptions for Nokia Technologies in its Financial Report for Q4 issued on January 25, 2024. Nokia anticipates recognizing net sales from this agreement, including catch-up payments, in Q1 2024. While progressing towards the conclusion of its smartphone licensing renewal cycle, Nokia Technologies is making strides in growth areas such as automotive, consumer electronics, IoT, and multimedia. Nokia remains confident in returning to an annual net sales run-rate of EUR 1.4 to 1.5 billion in the mid-term.
Nokia’s patent portfolio, built on an investment of around €150 billion in R&D since 2000, comprises approximately 20,000 patent families, including over 6,000 declared essential to 5G. Through fair, reasonable, and non-discriminatory (FRAND) terms, Nokia allows companies to license and use its technologies, fostering innovation and the development of new products and services in open standards.
