Nokia Reap Big Rewards From LG Patent Ruling
Following a ruling by an arbitration court, Nokia is set to receive additional revenue from LG Electronics for using its smartphone patents.
The Finnish-based company is set to book extra revenue from the current quarter, plus receive a one-off sum, however, no exact figures have been disclosed.
Arbitration between the two companies started in 2015.
Maria Varsellona, Nokia’s Chief Legal Officer states of the ruling:
“We believe that this award confirms the quality of Nokia’s patent portfolio. We continue to see potential for additional licensing opportunities”.
Nokia’s portfolio includes recently signed details with notable smartphone makers Samsung, Apple and Chinese-based Xiaomi Technology.
Reports state Nokia’s patent division received sales of $925 million during the first half of the year – representing 6% of group total revenue. The nature of licensing payments, however, is highly profitable.
The additional revenue is likely to be a welcome injection.
Research analysts, such as Inderes’ Mikael Rautanen, states of the ruling:
“Nokia has been quicker than expected to clinch deals in the patent side… The next interesting scalp will be Huawei”.
Mr Rautanen states revenue generated from the LG deal will be smaller than that received from an agreement with Apple – estimated to offer $375 million annually.
The Finnish company’s phone business was sold to Microsoft in 2014, though Nokia has kept its patent catalog which includes the areas of; innovation in smartphone hardware reduction, battery life conservation, radio reception increases and several other aspects.