Patent license deal includes 2G, 3G and 4G technologies
LG Electronics is the latest of more than 60 companies to reach a patent license agreement with Nokia concerning 2G, 3G and 4G mobile technologies. The Korean company has agreed to take a royalty-bearing patent license for Nokia’s smartphone technologies.
This is the first major smartphone manufacturer to take part in this licensing program since Nokia sold Microsoft its Devices and Services business in 2014. Following the acquisition, Nokia was split into three companies: Nokia Networks, Here and Nokia Technologies.
“We are pleased to welcome LG Electronics to our licensing program,” said Ramzi Haidamus, president of Nokia Technologies. “We’ve worked constructively with LG Electronics and agreed on 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.”
Nokia faces some risk in this agreement, including expectations related to future performance of Nokia Networks, Here and Nokia Technologies, as well as changes in management, operational structure and operating models.
The agreement will be subject to commercial arbitration, which is expected to conclude in one or two years. Other terms of the agreement have not been released.