Date: 13/02/2024

Nokia Concludes Smartphone Patent License Renewal Cycle with Seventh major Agreement

Nokia Technologies, the licensing arm of Nokia, has finalized its last major smartphone patent license agreement, marking the conclusion of its smartphone patent license renewal cycle that began in 2021. This significant milestone signals a period of stability for Nokia's licensing business, with no major smartphone agreements set to expire for several years.

Recent agreements with companies like Honor, OPPO, and vivo, along with renewals with Apple, Samsung, and Huawei, have solidified Nokia's position in the smartphone patent licensing landscape.

Nokia Technologies said it expects significant catch-up payments in Q1 2024 and now has an annual net sales run-rate of approximately EUR 1.3 billion. Nokia Technologies said it currently has an annual net sales run-rate (contracted recurring net sales) of approximately EUR 1.3 billion, excluding catch-up net sales. In addition to the remaining addressable smartphone market, it will continue to focus on opportunities to grow the annual net sales run-rate through patent licensing in areas such as automotive, consumer electronics, IoT and multimedia, to reach a run-rate of EUR 1.4-1.5 billion in the mid-term.

Considering the many agreements Nokia Technologies has signed in the quarter, Nokia said its Q1 net sales are expected to benefit from significant catch-up net sales in excess of EUR 400 million related to prior periods of non-payment. This is consistent with the assumption that Nokia provided in its Financial Report for Q4 and Full Year 2023 for Nokia Technologies to generate at least EUR 1.4 billion of operating profit in 2024 including the benefit of catch up net sales.

Nokia boasts an industry-leading patent portfolio built on decades of research and development, totaling around €150 billion. With over 20,000 patent families, including 6,000 essential to 5G, Nokia's patents contribute to open standards and foster innovation in various sectors.

Jenni Lukander, President of Nokia Technologies, said: “We are delighted to have successfully completed our smartphone license renewal cycle. 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. We have already made significant progress in these growth areas and have a strong pipeline of future opportunities.”

Source: Nokia

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