Nokia, on Monday, announced extension of existing patent licensing agreement by Samsung for another five years.
The patent agreement between the two was set to expire by 2013 end. The extended deal, starting January 1, 2014, may require Samsung to pay extra as per the revised deal to Nokia. Nokia announced that what Samsung will be paying “shall be finally settled in a binding arbitration which is expected to be concluded during 2015”.
Nokia’s Chief Intellectual Property Officer, Paul Melin, in a statement has said that “This extension and agreement to arbitrate represent a hallmark of constructive resolution of licensing disputes, and are expected to save significant transaction costs for both parties”.
The Finnish handset maker will be acquired by Microsoft in 2014, except its patent portfolio. Nokia said that it “sees further opportunity to create value by investing in innovation, and by actively managing its patent portfolio and licensing activities”. Patent licensing fees coming from the No. 1 phone maker in the world, Samsung, would be quite lucrative for Nokia.
Last year, Nokia filed a major legal suit against its smartphone business rivals including HTC and RIM claiming that they weren’t licensing its standards essential patents.
Last week, Nokia won the patent battle against HTC in the U.K. and is now seeking a ban on the HTC One, which is HTC’s flagship Android device. HTC was found guilty on a patent for “Modulator structure for a transmitter and a mobile station, the Patents court announced.