Nokia and LG signs agreement on smartphone patent license. In this agreement LG, the Korean company will license a number of Nokia’s smartphone-related patents. Through this mutual agreement, LG had agreed to a “royalty-bearing smartphone patent licence” from Nokia which will be covering Nokia’s 2G, 3G, and 4G patents. Despite the fact that Nokia isn’t making smartphones any longer, regardless it has a massive patent portfolio holding up to be taken advantage of by another smartphone manufacturing company in need.
On this occasion President of Nokia Technologies, Ramzi Haidamus 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 is the first smartphone manufacturer to turn into a licensee since Nokia sold off its device business to Microsoft a year ago, and joins 60 different organizations that have patent understandings set up with Nokia. LG Electronics is a Korean company which manufactures different electronic equipment’s ranging from personal use to high end commercial used equipment. LG have an array of cellular phones that ranges from bar phones to hi tech smartphones. According to analysts Gartner, LG devices make up around 4.6 percent of all smartphones shipped globally.
Other terms of the agreement are kept confidential so far by both the companies while the royalty rate that LG will pay is to be agreed through commercial arbitration, a process that’s likely to conclude in one to two years.