Nokia and vivo Ink Multi-Year 5G Patent Cross-License Agreement
Feb 07, 2024: Nokia, the global technology leader, has officially signed a multi-year patent cross-license agreement with vivo, a significant player in the smartphone industry. The agreement encompasses royalty payments from vivo to Nokia, including catch-up payments to cover the dispute period, effectively resolving all ongoing patent litigation between the two companies across various jurisdictions. The terms of the agreement remain confidential as per mutual agreement.
Jenni Lukander, President of Nokia Technologies, expressed satisfaction, stating, “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. Together these licensing agreements demonstrate Nokia’s significant contribution to developing key technologies relied upon by the entire smartphone industry and they will provide long-term stability to our licensing business for years to come.”
Lukander added, “We are delighted to have reached an agreement with vivo, which reflects mutual respect for each other’s intellectual property rights. vivo is one of the leading players in the global smartphone industry. We look forward to bringing more innovation to their users around the world through our collaboration.”
Xianwen Xu, General Manager of Legal Affairs Department at vivo Mobile Communication Co., Ltd., expressed satisfaction, stating, “We are pleased to have reached a global cross-license agreement with Nokia. Signing the agreement reflects the mutual recognition and respect for each other’s patent value in cellular technology and it also plays a significant role in fostering a positive development environment within the industry. We are dedicated to investing in R&D of smart devices and intelligent services, providing extraordinary hi-tech products and services for users worldwide.”
The agreement aligns with Nokia’s assumptions disclosed in its Financial Report for Q4 issued on January 25, 2024. Nokia will begin recognizing net sales from this agreement, including catch-up payments covering the periods of non-payment, in Q1 2024. Nokia Technologies is making good progress in its growth areas of automotive, consumer electronics, IoT, and multimedia, and remains confident that its annual net sales run-rate will return to EUR 1.4 to 1.5 billion in the mid-term.
Nokia’s patent portfolio, a result of around €150 billion invested in R&D since 2000, is a formidable force in the industry with around 20,000 patent families, including over 6,000 patent families declared essential to 5G. The company’s commitment to open standards and fair licensing terms fuels innovation, contributing to the development of new products and services for consumers.
