Finnish mobile manufacturer Nokia, which has staged a comeback of sorts this year with range of new Android handsets, expects to record additional revenue in Q3 for its patents used by other phone manufacturers. This comes after a favorable ruling by an arbitration court on payments Nokia was supposed to receive from Korean electronics-manufacturer LG. The Finnish company would also get a one-off payment from LG, Reuters reported. News of the court ruling sent Nokia shares up by 0.6 percent. Also Read - Nokia C20 Plus budget smartphone launched: Check specs, price and other detailsAlso Read - Nokia C01 Plus with an upgraded processor and bigger battery launched
Nokia announced that it will follow existing practices for disclosing patent licensing revenue in its quarterly announcements. But the company “expects revenue for the agreement will be recognized” in the next quarter. The ruling wad made by the International Court of Arbitration of the International Chamber of Commerce. “We believe that this award confirms the quality of Nokia s patent portfolio. We continue to see potential for additional licensing opportunities,” Nokia Chief Legal Officer Maria Varsellona stated. ALSO READ: Nokia 8 with 2K display and 13-megapixel dual rear camera setup to launch on July 31: Report Also Read - Apple’s Craig Federighi admits the level of Mac malware is not acceptable, iOS fairs better
Nokia has already signed partnerships with phone makers Apple, Samsung and Xiaomi to license patents for their upcoming devices. “Nokia has been quicker than expected to clinch deals in the patent side… The next interesting scalp will be Huawei,” a leading analyst was quoted as saying. While the erstwhile giant’s telecom and handset business might have slumped in the past few years, licensing payments are growing for Nokia. The deal with Apple is estimated to bring in nearly $300 million annually. ALSO READ: Apple pays Nokia $2 billion as settlement for patent lawsuit
The company holds patents for various technology that saves battery life, reduces the need for hardware parts in a phone, increases radio reception, and so on. While it is looking to stage a resurgence in the smartphone universe, its patent division has always been steady. Even when the company sold its phone business to Microsoft in 2014, it had retained control over patents. In 2017, the company s patent unit grossed revenues of 616 million, according to reports. That is 6 nearly percent of Nokia’s total revenue. And is likely to go up after the patent ruling.