Nokia announced that it has reached an agreement with Samsung on the 5G patent license agreement. The agreement covers Nokia’s fundamental inventions in 5G and other technologies. Samsung will pay royalties to Nokia for a multi-year period starting Jan. 1, 2023, since the previous agreement expired at the end of 2022.
Nokia and Samsung didn’t take much time to renew the agreement, but did so quite quickly, suggesting that the companies are working well together.
This agreement is very important for Nokia Technologies, which is responsible for Nokia’s patent families and their exploitation. Since Samsung is a leader in the smartphone industry, the royalties will probably have a positive impact on the financial report of this division. Actually, Nokia had expected this agreement and mentioned this in the commentary on Nokia Technologies’ long-term outlook in its Q3 financial report.
However, Samsung won’t be the only company to sign an agreement with Nokia. Tommi Uitto, President of Mobile Networks at Nokia, tweeted that Oppo and Vivo should follow Samsung’s lead and use Nokia’s 4G and 5G innovations. These two brands are currently in the top five list of the best smartphone business.
Nokia has invested significant sums since 2000 in building a patent portfolio that includes some 20,000 patent families, including more than 4,500 patent families declared essential for 5G.