Nokia has announced the signing of a patent cross-license agreement with Vivo. This agreement not only solidifies the relationship between the two tech giants but also brings an end to all ongoing patent litigation in various jurisdictions. The terms of the agreement, as per mutual consent, will remain confidential.
Vivo has committed to making royalty payments to Nokia. Additionally, catch-up payments will be facilitated to cover the dispute period, marking a comprehensive resolution to the patent-related issues between the two companies.
Vivo is the fifth largest smartphone supplier in the world. Vivo has shipped 23.9 million smartphones during the fourth quarter of 2023, according to Canalys report.
“This is the sixth major smartphone patent license agreement we have signed in the past thirteen months, and we have now almost completed our smartphone license renewal cycle,” Jenni Lukander, President of Nokia Technologies, said.
Jenni Lukander emphasized the significance of these licensing agreements in showcasing Nokia’s substantial contribution to pivotal technologies crucial for the entire smartphone industry. She further noted that these agreements would provide long-term stability to Nokia’s licensing business for years to come.
“Signing the agreement reflects the mutual recognition and respect for each other’s patent value in cellular technology and also plays a significant role in fostering a positive development environment within the industry,” Xianwen Xu, General Manager of Legal Affairs Department at Vivo Mobile Communication, said.
The announcement aligns with Nokia’s disclosed assumptions for Nokia Technologies in its Financial Report for Q4 issued on January 25, 2024. Nokia anticipates recognizing net sales from this agreement, including catch-up payments covering non-payment periods, starting in Q1 2024.
Nokia Technologies is on track to conclude its smartphone licensing renewal cycle and is making notable progress in growth areas such as automotive, consumer electronics, IoT, and multimedia. The company remains confident that its annual net sales run-rate will return to EUR 1.4 to 1.5 billion in the mid-term.
Highlighting Nokia’s patent portfolio, built on approximately €150 billion invested in R&D since 2000, the company boasts around 20,000 patent families. Notably, over 6,000 patent families are declared essential to 5G.
Nokia adheres to fair, reasonable, and non-discriminatory (FRAND) terms, contributing its inventions to open standards in exchange for the right to license them.