Samsung Extends Agreement to License Nokia Patents
Nokia announced on Monday that Samsung has extended for five years a patent agreement that was set to expire at the end of this year.
However, a clause in the deal means that the price to Samsung will have to be determined through binding arbitration that likely won’t be concluded until 2015.
“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”, Nokia Chief Intellectual Property Officer Paul Melin said in a statement.
Nokia is set to sell its flagship phone business to Microsoft, but it is hanging on to its massive patent portfolio, with intellectual property revenue slated to be one of three key businesses for the remaining Nokia, along with networking gear and its mapping unit.
Update: In a statement, Samsung said it has “in essence agreed to extend our cross license agreement with Nokia, and will enter into arbitration to determine the royalty amount.”