Nokia, RIM Agree on Patent Licensing Deal

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By Paul Ausick Updated Published
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nokia-lumia-920t-yellow
courtesy of Nokia Corp.
Struggling smartphone makers, Nokia Corp. (NYSE: NOK) and Research In Motion Ltd. (NASDAQ: RIMM) have signed an agreement ending all current patent licensing disputes between the two companies. The deal includes a one-time payment from RIM to Nokia, as well as ongoing payments to Nokia. The two companies did not disclose the financial details of the agreement.

Seemingly nonstop litigation among Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), Samsung Electronics, HTC and nearly every other smartphone maker has become a hallmark of the explosion in mobile devices. The deal between Nokia and RIM could be the beginning of the end to the litigation, or it could unleash a new round.

Nokia has now established that it owns intellectual property of some value, and the company may decide to increase its efforts in the patent wars. Bloomberg cites an analyst who believes the one-time payment may be “several hundred million euros” and the ongoing payments may be as much as 100 million euros a year for five years. That’s not chump change, and if Nokia decides that it can extract similar payments from other competitors, the game will be on. Nokia could certainly use the cash.

Paul Ausick

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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