Finnish telecom equipment giant Nokia (NOKIA.HE) announced on Monday that it has entered into a multi-year 5G patent license agreement with Chinese smartphone manufacturer Vivo.
The agreement marks Nokia’s 6th major smartphone licensing deal in the past 13 months, further solidifying its position in the rapidly evolving telecommunications landscape.
The comprehensive agreement not only establishes a long-term partnership between Nokia and Vivo but also brings an end to all existing patent litigation between the two entities across various jurisdictions. Nokia, in a statement, emphasized that the terms of the agreement would remain confidential, adhering to the mutual understanding between the parties involved.
Net sales resulting from this significant collaboration are set to be recognized by Nokia starting the first quarter of 2024, following Nokia’s successful negotiations with other prominent players in the smartphone industry, including Apple, Samsung, OPPO, Honor, and Huawei, over the past 13 months.
“Nokia has now almost completed its smartphone license renewal cycle,” the company stated, highlighting the achievement of renewing and solidifying its licensing agreements within a relatively short timeframe.
In a broader context, Nokia foresees substantial returns from its intellectual property licensing business, Nokia Technologies. The group revealed last month that it anticipates generating a minimum of 1.4 billion euros ($1.51 billion) in operating profit from Nokia Technologies in 2024.
This optimistic projection further underscores the company’s commitment to leveraging its intellectual property assets in a dynamically competitive market.
The 5G patent license agreement with Vivo not only enhances Nokia’s standing in the global telecommunications arena but also paves the way for continued innovation and collaboration in the ever-expanding realm of mobile technology. The industry eagerly awaits the impact of this strategic partnership on the evolution of 5G technologies and the mutual benefits it holds for both Nokia and Vivo.