After arbitration with #LG, #Nokia boost revenue expectations
In 2015, Nokia and LG signed a patent licensing deal that covers 2G, 3G and 4G technologies. The royalty payment obligations were subject to a commercial arbitration that ended today. Nokia announced that the International Court of Arbitration of the International Chamber of Commerce made its decision, but the terms remain confidential.
Nokia said in the press release that it will receive a one-time catch-up payment, with additional revenues expected during the term of the agreement. The revenue from the agreement will be recognized in the upcoming Q3 financial report.
Nokia Technologies, part of Nokia responsible for patents, will have maybe its best year ever in 2017 in terms of revenue and profits. This year Nokia settled with Apple for a $2 billion cash deal, that will follow with regular revenue from royalties. Nokia also made an agreement with Xiaomi, and is negotiating with other Chinese manufacturers for use of its patents.
You can check the full press release here or keep reading down below.
Nokia receives decision in patent license arbitration with LG Electronics
Espoo, Finland – The International Court of Arbitration of the International Chamber of Commerce has issued its award for the binding arbitration between Nokia and LG Electronics. The companies had previously agreed that this would settle the royalty payment obligations for the royalty-bearing smartphone patent license from Nokia Technologies announced in June 2015.
While details of the arbitration award and license agreement remain confidential, Nokia will follow its existing practices for disclosing patent licensing revenue in its quarterly announcements and expects that revenue for the agreement will be recognized in the third quarter of 2017, including an element of non-recurring catch-up revenue, with additional revenues expected during the term of the agreement.
“The use of independent arbitration to resolve differences in patent cases is a recognized best practice. We believe that this award confirms the quality of Nokia’s patent portfolio,” said Maria Varsellona, chief legal officer at Nokia. “We continue to see potential for additional licensing opportunities in the mobile communications market and beyond.”
