Nokia Oyj forges patent agreement with Samsung Electronics Co.

By Marc Castro

Nov 04, 2013 09:47 AM EST

The world's largest mobile-phone manufacturer, Samsung Electronics Co, was able to forge an agreement on patent use with owner Nokia Oyj for another five years. This is a boon to the Finnish company as it sought to rebuild revenues after the sale of its handset unit to Microsoft.

In the agreement, Samsung would pay Nokia additional compensation commencing on January 1. This was confirmed by a statement from Nokia from its headquarters in Espoo, Finland today. The amount would be negotiated during binding negotiation proceedings expected to be competed in 2015. The previous agreement was set to be closed at the end of 2013.

Patents would be an area of focus for Nokia after the mobile-phone manufacturer had agreed to sell its handset unit to Microsoft Corp last September. After the mobile handset business, the company's next largest business would be in network equipment. Another revenue stream would be the retention of its patents and licenses, 

Nokia spokesperson Mark Durrant had declined to provide a comment on the terms of the deal. What he did confirm was Nokia's average annual revenue of nearly EUR500 million or USD675 million from the agreements it had forged on more than its fifty standing licensees. 

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