Nokia announced on Wednesday the signing of a multi-year patent cross-license agreement with OPPO, resolving all existing patent litigation between the two companies globally.
As part of the agreement, OPPO will make royalty payments, including catch-up payments covering periods of non-payment. The specific terms of the deal remain confidential.
Jenni Lukander, President of Nokia Technologies, expressed satisfaction with the agreement, highlighting the mutual respect for intellectual property and Nokia’s commitment to research and development.
Lukander emphasized the anticipation of collaborating with OPPO to bring further innovation to global smartphone users. The agreement, along with other significant smartphone deals concluded in the past year, is expected to contribute to the long-term financial stability of Nokia’s licensing business.
Feng Ying, OPPO’s Chief Intellectual Property Officer, also welcomed the agreement, noting the mutual recognition and respect for each other’s intellectual property. The cross-license agreement covers 5G standard-essential patents and lays the foundation for potential future collaborations between the two companies.
The announcement aligns with Nokia’s disclosed assumptions in its Financial Report for Q3 2023 regarding the long-term outlook for Nokia Technologies. Nokia will begin recognizing net sales from this agreement, including catch-up payments, in Q1 2024.
The company remains optimistic about its annual net sales run-rate returning to EUR 1.4 to 1.5 billion in the mid-term, emphasizing progress in growth areas such as automotive, consumer electronics, IoT, and multimedia.
Nokia’s substantial patent portfolio, built on over €140 billion invested in research and development since 2000, comprises around 20,000 patent families, including over 6,000 essential to 5G. T
he company adopts a fair, reasonable, and non-discriminatory (FRAND) licensing approach, allowing other companies to use its technologies without the need for extensive investments in standards. This collaborative approach aims to foster innovation and the development of new products and services.
