Nokia announced this morning that it signed a patent and business cooperation agreement with the Chinese tech company Xiaomi. To be clear right at start, this deal does not include HMD, or Surge S1 processor that we saw in the rumor yesterday, that was proven to be fake.
Nokia and Xiaomi announced today that they have signed a multi-year patent licensing deal, including a cross-license of companies’ cellular standard and essential patents. Nokia also sold a number of patents as part of this deal.
The two companies entered into a business cooperation agreement, under which Nokia will provide “network infrastructure equipment designed to deliver the high capacity, low power requirements expected by large web providers and datacenter operators. Nokia and Xiaomi will work together on optical transport solutions for datacenter interconnect, IP Routing based on Nokia’s newly announced FP4 network processor, and a data center fabric solution. In addition, the companies have agreed to explore opportunities for further cooperation, in areas such as Internet of Things, augmented and virtual reality, and artificial intelligence.”
“Xiaomi is one of the world’s leading smartphone manufacturers and we are delighted to have reached an agreement with them,” said Rajeev Suri, President & CEO of Nokia. “In addition to welcoming such a prominent global technology company to our family of patent licensees, we look forward to working together on a wide range of strategic projects.”
“As a company seeking to deliver more exciting technological innovations to the world, we are excited at the opportunity to work more closely with Nokia in future,” said Lei Jun, chairman and CEO of Xiaomi. “Xiaomi is committed to building sustainable, long-term partnerships with global technology leaders. Our collaboration with Nokia will enable us to tap on its leadership in building large, high performance networks and formidable strength in software and services, as we seek to create even more remarkable products and services that deliver the best user experience to our Mi fans worldwide.”
This is great news for Nokia, because Xiaomi is the first Chinese mobile phone manufacturer that agreed to pay for a patent license, in a deal including sales of patents, cross-licensing, and further technological cooperation, that Nokia announced to pursue on the IP Networks Reimagined event last month and forming a special unit for internet companies in China. After Xiaomi, that sold 14.8 million smartphones in Q1 2017, surely more Chinese phone manufacturers will agree to license Nokia patents, because, as of today, they have a precedent to follow.