Nokia and Samsung extend their patent agreement for another five years
Nokia has extended its patent licensing agreement with Samsung for another five years, both parties announced yesterday. According to the press release, Samsung will pay additional compensation to Nokia and the amount will be finally settled in arbitration in 2015. Sources familiar with the matter suggest that the talks have been going for a long time and the new agreement can be considered as a continuation of the current deal the companies has previously agreed to.
Details about the new agreement haven’t been specified though it is most likely the original terms have been extended. Neither this time, nor the previous announcement revealed what the patents cover. Paul Melin from Nokia says: “This extension and agreement is expected to save significant transaction costs for both parties“.
Since we don’t know any details about the patent agreement, it could cover a variety of patents ranging from simple details like Wi-Fi to apps and software. However, it is very unlikely that we will learn more, because Nokia remains quite strict in barring any side from saying more that what the press release says. What does the new agreement means for Samsung we can only guess. One is sure, for Nokia this will further improve the company’s financial stability alongside the money that will come from Microsoft for the Device unit.
As you know, Nokia is selling its smartphone business to Microsoft in 2014, but the Finish company retains its patent portfolio. It seems that Nokia will focus on value creation through innovations, trying to actively manage its patent and licensing portfolio. Other area Nokia will focus on in the future is its mapping services HERE. Nokia has already signed agreements with several leading car manufacturers for bringing HERE into the new cars.