Nokia is going to receive about $1.5 billion over next three years after its long-running dispute with Samsung over a patent came to a settlement for good. The settlement was part of an independent arbitration on a licensing agreement signed between Nokia and Samsung back in 2013. The agreement allowed both Nokia and Samsung to use each other’s patents for next five years. Yet two years to go before the agreement expires, the settlement seems helpful reducing chances for any future lawsuit.
The amount Nokia is going to receive from Samsung over patent has gone dramatically high after it was initially assumed much lower. The settlement amount was first estimated at $100 million after miscalculating patent’s sale in 2014 which later came out to be over $800 million for the year alone. Some analysts however expected Nokia claiming at high as $900 million from the patent for 2014.
As we know the disputes with patents are not rare among hardware manufacturers in the market these days. Like Nokia and Samsung, recently Apple and Ericsson came to a similar agreement over patents. According to the details Apple was set to pay an undisclosed amount to Ericsson besides seven-year royalty for using patents. After settlement with Samsung, Nokia is yet to settle another similar case with LG which can also bring some more profit to Nokia.
Nokia sold its phone business to Microsoft back in 2014 but the ownership of patents is yet to pay much to the company for the years ahead. As Nokia’s agreement with Samsung states, it is set to continue reaping the rewards of its patents until 2018 ends. As per the calculations of settlements amount, between 2016-2018 Nokia is expected to receive $1.4 billion from Samsung. After getting rid of its phone business Nokia is nowadays focused on networking and telecoms equipment.