Nokia Corporation announced today the finalization of its last remaining major smartphone patent license agreement, marking the conclusion of its exhaustive smartphone patent license renewal cycle that commenced in 2021.
This milestone signals a new era for Nokia Technologies, the company’s licensing arm, which is now poised to enter a period of stability with no imminent expiration of major smartphone agreements anticipated for several years.
The announcement comes on the heels of recent agreements inked with tech players including Honor, OPPO, Vivo, and a fresh agreement with a company whose license had previously expired. These join a roster of crucial license agreements signed with industry giants Apple, Samsung, and Huawei in preceding years, underscoring Nokia’s relevance in the smartphone ecosystem.
Currently boasting an annual net sales run-rate of approximately EUR 1.3 billion, excluding catch-up net sales, Nokia Technologies remains committed to expanding its revenue streams beyond the smartphone domain.
Nokia aims to propel its annual net sales run-rate to EUR 1.4-1.5 billion in the medium term with a strategic focus on patent licensing opportunities in burgeoning sectors such as automotive, consumer electronics, IoT, and multimedia.
Forecasts suggest Nokia Technologies is poised to reap the benefits of significant catch-up net sales exceeding EUR 400 million in the first quarter, a result of agreements secured during the preceding period.
These projections align with Nokia’s stated objective, articulated in its Financial Report for Q4 and Full Year 2023, of generating at least EUR 1.4 billion in operating profit for Nokia Technologies in 2024, inclusive of the boost from catch-up net sales.
“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,” Jenni Lukander, President of Nokia Technologies, said.
Central to Nokia’s success is its formidable patent portfolio, underpinned by over €150 billion invested in research and development since 2000. Comprising around 20,000 patent families, including over 6,000 essential to 5G, Nokia’s patent arsenal is pivotal in shaping global technological standards. The company adheres to fair, reasonable, and non-discriminatory (FRAND) terms, facilitating the widespread adoption of its innovations while ensuring equitable licensing practices.
