Nokia has revealed that it has extended its patent licensing agreement with Samsung, and the agreement will run for a number of years.
The two companies first agreed a deal back in 2016. This initial agreement was then extended to cover more patents, and now their new deal should cover Samsung for the next few years.
Under the agreement, Samsung will make payments to Nokia for a multi-year period beginning 1 January 2019 onwards. The terms of the agreement remain confidential between the parties.
“Samsung is a leader in the smartphone industry and has been a Nokia licensee for many years,” said Maria Varsellona, Nokia Chief Legal Officer and President of Nokia Technologies. “We are pleased to have reached agreement to extend our license. This agreement demonstrates the strength of our patent portfolio and our leadership in R&D and licensing for cellular standards including 5G.”
The Importance of Patent Licensing in the Tech Industry
Patent licensing agreements are crucial in the technology industry, particularly for companies like Nokia and Samsung that invest heavily in research and development (R&D). These agreements allow companies to share their innovations while protecting their intellectual property. For instance, Nokia’s extensive patent portfolio includes essential technologies for cellular standards, including the latest advancements in 5G. By licensing these patents to Samsung, Nokia not only generates revenue but also fosters innovation and collaboration in the industry.
Samsung, on the other hand, benefits from access to cutting-edge technologies without the need to develop them independently. This symbiotic relationship enables Samsung to maintain its competitive edge in the smartphone market, offering consumers the latest features and improvements. The extension of this agreement underscores the mutual benefits and the ongoing commitment of both companies to drive technological advancements.
Historical Context and Future Implications
The relationship between Nokia and Samsung dates back several years, with their first significant patent licensing agreement established in 2016. This initial deal laid the groundwork for future collaborations, allowing both companies to navigate the complex landscape of technology patents. Over the years, the scope of their agreement has expanded, reflecting the rapid pace of innovation and the increasing importance of new technologies like 5G.
The extension of the patent licensing agreement is particularly significant in the context of the global rollout of 5G networks. As a leader in 5G technology, Nokia’s patents are essential for the development and deployment of 5G-enabled devices. Samsung, being a major player in the smartphone industry, needs access to these patents to ensure its devices are compatible with the latest network standards. This agreement not only secures Samsung’s position in the market but also accelerates the adoption of 5G technology worldwide.
Moreover, the confidentiality of the agreement’s terms highlights the competitive nature of the tech industry. While the financial details remain undisclosed, the strategic importance of the deal is evident. Both companies are likely to benefit significantly, with Nokia receiving substantial licensing fees and Samsung gaining access to critical technologies.
You can find out more details about the new patent licensing deal between Nokia and Samsung at the link below.
Source Nokia
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