Nokia and Huawei have signed a new patent licensing deal. The two companies have come to an agreement on Nokia’s patents. The deal is a multi-year one and it will cover a wide range of Nokia patents.
The details of the deal have not been disclosed, it is not clear as yet on how much Huawei has paid Nokia for its use of their patents.
“Huawei is one of China’s largest companies and is among the world’s leading smartphone manufacturers and we are delighted to welcome them to our family of patent licensees,” said Maria Varsellona, chief legal officer at Nokia.
While details of the license agreement remain confidential, Nokia will follow its existing practices for disclosing patent licensing revenue in its quarterly financial reports and expects that revenue for the agreement will begin to be recognized in the fourth quarter of 2017, including an element of non-recurring catch-up revenue, with additional revenues expected during the term of the agreement.
The Significance of Patent Licensing Deals
Patent licensing deals are crucial in the technology industry as they allow companies to use each other’s innovations without infringing on intellectual property rights. These agreements can foster collaboration and innovation, enabling companies to build on existing technologies to create new products and services. For Nokia, a company with a rich history of innovation in telecommunications, such deals are a way to monetize their extensive patent portfolio. For Huawei, access to Nokia’s patents can enhance their product offerings and ensure they remain competitive in the global market.
Impact on the Industry
The agreement between Nokia and Huawei is significant for several reasons. Firstly, it underscores the importance of intellectual property in the tech industry. Patents are a valuable asset, and licensing them can be a substantial revenue stream for companies like Nokia. Secondly, it highlights the global nature of the tech industry. Huawei, a Chinese company, and Nokia, a Finnish company, are collaborating across borders, reflecting the interconnectedness of the global market.
Moreover, this deal could set a precedent for future agreements between other tech giants. As companies continue to innovate, the need for access to a broad range of patents will only grow. This could lead to more cross-licensing agreements, fostering a more collaborative environment in the tech industry.
You can find out more information about the deal between Huawei and Nokia at the link below.
Source Nokia
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