Software Licensing Featured Articles

Nokia and Samsung Quietly Renew Licensing Deal

November 08, 2013
By Steve Anderson, Contributing Software Licensing Writer

Patent issues have always been something of a bone of contention, between major companies going at each other over various patents—Apple and Samsung come pretty readily to mind in the field of patent litigation—and the various non-practicing entities (or “patent trolls”, for those who prefer the term) that own a set of patents and not much else, there's quite a bit going on in the field of software and hardware patents. One of the latest go-rounds in the field seems to have been settled quietly, amicably, and not just a bit mysteriously in the form of Nokia and Samsung's patent settlement.

Nokia recently announced that it was extending a patent license agreement with Samsung for another five years. The two firms were heading into binding arbitration to settle the matter of compensation relating to the agreement, and expected that arbitration would conclude sometime in 2015. Samsung will start making payments January 1, 2014, as the agreement would have expired at the end of this year had it not been for the extension.

The details around said deal—just what patents are covered, just how much money is involved, and similar matters—are being kept very much hush-hush, with several non-disclosure agreements surrounding the details. Nevertheless, given that Nokia, at last report, has deals with 50 different companies—including “most of the major handset suppliers,” according to Nokia itself—it's not surprising that Nokia has deals on several fronts as well. Recently, Nokia's Stephen Elop noted that Nokia expects to bring in fully $653 million in patent licensing in 2013, so it's clear that Nokia's patents are a major money-making operation.

So, while the exact terms of the deal between Samsung and Nokia are likely to remain quiet, the whole thing should be quite expected. There's a lot going on behind the scenes here, and that behind the scenes action is something to keep in mind when considering any future developments. Indeed, even despite the fact that Nokia sold off its devices and service business for $7.2 billion to Microsoft at last report—assuming, of course, nothing stops the sale before it’s ultimately completed—there's still quite a bit of value left in Nokia as a whole, and this deal may well be trying to call attention to that point.

The takeaway here is that not only does Nokia have quite a bit going on in terms of the wider field but also that patent licenses are a major part of the electronics business. It's likely to continue to be that way for some time to come, for better or for worse, and until then, there will be plenty more developments like this in the field.

Edited by Blaise McNamee

Featured Press Release

Featured White Papers

The Third Industrial Revolution: Intelligent Devices, Software, and the Internet of Things

The IDC MaturityScape: Subscription Business Model Management
This study is designed for suppliers of products or services that are sold via subscription business models, and provides a framework required for the effective management of subscription approaches...

Virtualization, License Compliance and the Application Producer/Enterprise Relationship

Market Trends: Move Beyond Homegrown Licensing and Entitlement as the IoT Creates New Revenue for Software
This Gartner report explains that the Internet of Things is turning manufacturers into software vendors that need to protect, differentiate and monetize offerings. By changing their approach to licensing, manufacturing product strategists can maximize revenue potential...

The New World of Global Electronic Software Distribution: Sophisticated, Scalable … and Business Smart

Plugging Revenue Leaks from the ERP Gap: A Revenue Opportunity for Application Producers
This white paper explains how ERP systems were built to handle physical assets, not digital goods and provides recommendations for alternative software licensing and compliance solutions...

Featured Webinars

Key Trends in Software Licensing and Pricing and 2014 Predictions

Usage, Subscription and Value-based Licensing Model Trends, Insight & Guidance
Amy Konary, Research Vice President with IDC and Flexera Software will discuss usage, subscription and value-based licensing model trends and provide insight and guidance on approaches to achieve the best business and revenue outcomes.

Grow and Differentiate Your Device Business

Gartner Webinar: License and Entitlement Management - Using Internet of Things to Create Opportunity
Laurie Wurster, Gartner Research Director, will share the trends that are shaping IoT, the shift from a hardware to a software company, what you need to know in order to protect your IP, and whether to build or buy a license and entitlement management solution.

Reduce Security Risks

Considerations When Transitioning to Physical + Digital Solutions
Network equipment providers' core business model is under pressure due to a combination of business and technology trends impacting the telecommunications industry. This webinar looks at the trends and provides essential guidance.

Free Trials

See For Yourself Why So Many Trust Flexera Software Solutions

  • LinkedIn
  • Google+
  • News
  • Twitter
  • Youtube
  • Facebook