Finnish telecoms giant Nokia has inked a multi-year 5G patent licensing agreement with China's Vivo, a leading smartphone manufacturer. This deal marks a significant development for both companies, resolving a long-standing patent dispute and paving the way for future collaboration in the 5G market.
Details of the agreement remain confidential, but Nokia confirmed it will recognize net sales generated from the deal in the first quarter of 2024. This suggests a potentially lucrative agreement for Nokia, whose intellectual property portfolio plays a crucial role in 5G technology.
"We are pleased to announce this agreement with Vivo, a major player in the global smartphone market," said Jenni Lukander, Chief Legal Officer at Nokia, in a statement. "This deal reflects the value of our innovation and strengthens our collaborations within the 5G ecosystem."
"Nokia has now almost completed its smartphone license renewal cycle," the company said. According Reuters, "the group last month said it expected Nokia Technologies, its intellectual property licensing business, to generate at least 1.4 billion euros ($1.51 billion) of operating profit in 2024."
The agreement comes amid a period of rapid growth for 5G technology, with Vivo positioned as a key player in the Chinese market, the world's largest for smartphones. By securing this licensing deal, Vivo ensures continued access to essential 5G patents for its devices, avoiding potential legal roadblocks.
"This agreement is mutually beneficial and allows us to focus on delivering cutting-edge 5G smartphones to our customers," said a spokesperson for Vivo. "We are committed to working with industry leaders like Nokia to advance 5G technology and bring its benefits to users worldwide."
Analysts see this deal as a positive development for both companies. "This agreement resolves a long-standing dispute and opens up new opportunities for collaboration between Nokia and Vivo," said industry analyst John Lee. "It also highlights the growing importance of patent licensing in the 5G era."
With 5G adoption expected to accelerate in the coming years, this deal positions Nokia and Vivo to capitalize on the immense potential of this transformative technology. It also sets a precedent for future collaborations within the 5G ecosystem, fostering innovation and ensuring broader access to this game-changing technology.