Nokia, a Finnish multinational telecommunications, information technology, and consumer electronics corporation, has signed a new patent cross-license agreement with the tech giant, Apple which will replace the current license that is due to expire at the end of 2023.
Nokia expects to recognize the revenue related to this new patent license agreement starting in January 2024. The agreement is consistent with the assumptions Nokia has disclosed in the commentary with respect to Nokia Technologies’ long-term outlook in its Financial Report for Q1 issued on April 20, 2023.
“We are delighted to have concluded a long-term patent license agreement with Apple on an amicable basis. The agreement reflects the strength of Nokia’s patent portfolio, decades-long investments in R&D, and contributions to cellular standards and other technologies.”
Nokia’s industry-leading patent portfolio is built on more than $153 billion invested in R&D since 2000 and is composed of around 20,000 patent families, including over 5,500 patent families declared essential to 5G. Nokia contributes its inventions to open standards in return for the right to license them on fair, reasonable and non-discriminatory (FRAND) terms.
Companies can license and use these technologies without the need to make their own substantial investments in the standards, fueling innovation and the development of new products and services for consumers.