Nokia Rose as it Signs 5G Patent License Deal with Samsung

On Monday, Nokia improved when it signed a cross-license 5G patent agreement with Samsung following the expiry of their prior agreement.

The stock price of the telecommunications company went up by 1.60% to $4.29 per share on January 23’s closing session.

Under the deal, Samsung had begun paying Nokia on January 01, 2023, for a multi-year period. The treaty covers the Finnish company’s essential inventions in 5G and other technologies.

However, the actual terms of the agreement remain confidential. This is because the two companies already signed a deal that followed a series of legal disputes.

Also, Nordic rival Ericsson reached an agreement with Samsung about 5G patents last year. It ended a discussion that hit its quarterly revenue.

Furthermore, the company’s license portfolio comprises about 20,000 permit families. This includes 4,500 patent families that are important for mmWave.

According to the President of Nokia Technologies, Jenni Lukander, they are delighted to have a cordial agreement with Samsung. They consider the famous smartphone maker a leader in the industry.

The understanding between the two gives them both the freedom to innovate. It even reflects the strength of Nokia’s portfolio. It includes decades-long investments in research and development and contributions to cellular standards and other technologies.

Moreover, the Finland-based corporation has invested over €130.00 billion in research and development since 2000.

Ericsson, Nokia, and Huawei Go After 5G Royalties

After retiring from the phone-making business, Nokia, Ericsson, and Huawei still collect billions of dollars from gadget sales. The vast libraries of deals they license with smartphone makers are responsible for it.

Whenever a device is sold, a portion of the money goes into the companies better known for building mobile networks.

For instance, Ericsson earned about $590.00 million from licensing intellectual property for the last three months of 2022. It came after its fight in the court against Apple.

On the other hand, Nokia signed what is considered to be a lucrative deal with Samsung. 

Meanwhile, Huawei’s licensing revenues exceeded its fees by charging a smartphone maker. It also reached agreements with several carmakers like Germany.