Nokia and LG announce smartphone patent licensing deal

Nokia has announced that it will license a number of its smartphone-related patents to LG Electronics. The patents will cover a range of technologies related to communication over 2G, 3G, and 4G networks. Neither company has disclosed how much LG has paid to license these patents, but they both feel as this agreement is mutually beneficial.

Ramzi Haidamus, President of Nokia Technologies said:

We are pleased to welcome LG Electronics to our licensing program. We've worked constructively with LG Electronics and agreed a mutually beneficial approach, including the use of independent arbitration to resolve any differences. This agreement sets the scene for further collaboration between our companies in future.

LG will be the first major smartphone manufacturer to join Nokia's licensing program since Microsoft completed its purchase of the company's devices division in 2014. Though it joins more than 60 other companies in licensing Nokia's technology.

Source: Nokia

Joseph Keller
  • Nice!
    And, you're in trouble, Samsung. If LG plays their cards well, you're in trouble.
    I think I'll skip the G4 and wait to see exactly which tech LG will license from Nokia.
  • I would guess it is the technology they are already using, just like everyone else.
  • Not really. There are two kinds of patents Nokia has. The common use ones - which are the ones most OEMs have been using for ages - and then there are the NEW patents that were, until Microsoft's attack on Nokia's D&S division, exclusive of Nokia phones. Things like Nokia's ClearBlack tech, imaging tech (PureView etc) and others. Those are new patents that Nokia is now making available for licensing through their Technologies division. Those are likely the ones LG will be licensing. Otherwise this announcement wouldn't have been made the way it was. Also, we don't know exactly what are the terms of this licensing. What does LG license and what does Nokia get in return exactly.
  • PureView and the other camera technologies were part of the MS deal, I don't believe those are Nokia property anymore. At least the trademarks are owned by MS so most likely patents to the technology related to them would be too but who knows. This licensing deal is for the tech LG is already using and LG has no other alternative than to pay Nokia (fighting this in the courts would not be in their best interest). IF it was for new technology that LG wishes to use in new products this would not be going to arbitration.
  • But Nokia retain all of it's patents, M$ actually had planned to acquire design patent only, which was cancelled
  • They weren't. The NAMES were, not the tech. The tech behind PureView etc remains with Nokia as they kept all the patents. And it isn't. It's for extra tech. Otherwise there wouldn't be such a kind of announcement. Also this goes through scrutiny as all of these kinds of deals go as per European laws. Even more if there are extra details on the deal that might require them. Again we do NOT have knowledge of the contents of the deal and if I had to bet, we won't know until the non-competition clause with Microsoft runs out (2016). Posted via the Android Central App
  • The press release is because this is the first time Nokia is entering into agreement AFTER the MS deal. The reason why it is significant is because now Nokia doesn't need to cross-license patents from others as Nokia isn't making any phones. Previously they needed licenses from Samsung, LG, Apple and other OEM's to use their technology and that's not the case anymore. This means more money to Nokia as the price to license Nokia technology should be now significantly higher than in the previous deals. If you read the press releases you will notice they have not agreed on price as Nokia is wanting more money than LG is willing to pay. This is why it is going through arbitration where it will be determined how much LG is required to pay to use the technology (that they are already using) covered by Nokia patents. Apple's licensing agreement with Nokia expires December 31, 2016. When that happens I would expect the new royalty payments from Apple to increase significantly due to the same reason as Nokia wouldn't need Apple's patents anymore.
  • it's network-related patents actually, not smartphone gimmicks, as written in press releases
  • Read the press again ;) Posted via the Android Central App
  • I'm sorry I misread it
  • Well this got interesting Posted via the Android Central App
  • Just got a G4, but if a Lumia style android lands I'll be straight on it. Posted via the Android Central App
  • GG Nokia Nexus 5 (AT&T)
  • Who cares about Nokia these days?
  • A lot of people here in Europe for example. I could ask the same about Motorola, for example ;) Posted via the Android Central App
  • Or Sony, or HTC, Posted via the Android Central App
  • Yeah. Though Sony is still relevant in Europe. But yeah, definitely. Posted via the Android Central App
  • Me Posted via the Android Central App
  • Me too! As much from sentiment as my still working there ;) Posted via the Android Central App
  • Interesting...
  • Bold move LG, bold move. Posted via Android Central App
  • g4 specs and a lumia camera...i can only hope. Posted via the Android Central App
  • If it has the HAAC mics, pure view camera and clear black screen technology, I would be all over this. Posted via the Android Central App
  • G5 coming soon....LOL Posted via Android Central App