Smartphone majors Nokia and Samsung have extended a patent license agreement for five years.
The agreement would have expired at the end of 2013.
According to the agreement, Samsung will pay additional compensation to Nokia from January 1, 2014. The amount will be finally settled in a binding arbitration which is expected to be concluded during 2015.
“This extension and agreement to arbitrate represent a hallmark of constructive resolution of licensing disputes, and are expected to save significant transaction costs for both parties,” said Paul Melin, chief intellectual property officer of Nokia.
Nokia will retain its patent portfolio following the proposed transaction to sell substantially all of its Devices & Services business to Microsoft and sees further opportunity to create value by investing in innovation, and by managing its patent portfolio and licensing activities.