Nokia has signed a multi-year patent license agreement with Huawei. The Finnish company has announced that it has signed a multi-year deal with Huawei for licensing its patents. Both the companies did not disclose the sum agreed for the deal. Also Read - Forget iPhone 13, grab iPhone 12 at an effective price of Rs 44,999 during Flipkart Big Billion Days saleAlso Read - iPhone 13 first look: Colossal cameras, glossy finish
“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. Also Read - Quick explained: EU’s standard charging port proposal for phones is bad news for iPhones
Nokia has not revealed details of its license agreement with Huawei, but has said that it will continue to share more details regarding patent licensing revenue during its quarterly financial reports. In a statement, Nokia says it hopes to start realizing revenue from the agreement in the fourth quarter of 2017. The patent licensing agreement also includes an element of non-recurring catch-up revenue, with additional revenue coming during the term of the agreement.
This is the second major patent license deal for the Finnish company after signing a similar deal with Apple in May this year. Apple didn’t disclose the sum it paid for the deal, but Nokia announced receiving an upfront payment of 1.7 billion while disclosing its second quarter earnings.
Ahead of the deal, Apple and Nokia were engaged in a patent battle where Nokia sued Apple in multiple countries and Apple stopped selling Nokia-owned Withings’ products from its online store and retails stores worldwide. Both the companies eventually settled and Nokia walked away with a huge amount of cash.
However, the deal between Huawei and Nokia comes without any lawsuit and is coming at a time when the Chinese company is planning to expand its smartphone business in the US. Nokia’s patents are licensed by many companies considering the fact that it pioneered GSM technology on mobile devices. It would be important to see the license agreement and the sum that Nokia stands to get from the deal.