14 DAY TRIAL // It looks like Nokia has been awarded additional licensing fee from Samsung by the International Court of Arbitration of the International Chamber of Commerce earlier today.
Although Samsung is already paying Nokia for several patent agreements, the Finnish company wanted more money and escalated the issue to regulatory commissions capable of settling it.
In fact, both companies have previously agreed that the problem of patent license fee should be settled by the entity mentioned earlier.
According to Nokia, the decision settles the amount of additional compensation payable to Nokia for the five-year extension of their license agreement, which covers some of Nokia patents for the period starting on January 1, 2014.
Moreover, the Finnish company announced that the additional license fee pertains Nokia Technologies patent portfolio until the end of 2018 since the license agreement was signed back in 2014.
The decision boosts Nokia Technologies' revenues for 2015 going forward
Today's decision will have a favorable financial impact on Nokia Technologies' earnings as the company reports net sales of approximately €400 million in the fourth quarter 2015 and approximately €1.020 million for the full year 2015.
Also, following the award, Nokia Technologies claims that as of the end of Q4 2015, the net sales run rate for the company was approximately €800 million.
More importantly, Nokia expects to receive at least €1.3 billion of cash during 2016 – 2018. The money is related to all settled and ongoing arbitrations in Nokia Technologies, including the additional licensing fee from Samsung.
“The use of independent arbitration to resolve differences in patent cases is a recognized best practice, and we welcome the additional compensation payable to Nokia under the extended agreement.
“We look forward to further collaboration with Samsung and others in additional licensing opportunities in the mobile communications market and beyond,” said Ramzi Haidamus, President of Nokia Technologies.
Nokia recently acquired Alcatel-Lucent, one of the world's leaders in the network infrastructure technology, to better compete with Huawei and other players in the market.
The acquisition also includes Alcatel-Lucent's patent portfolio and all the license agreements the French company signed over the years. We wouldn't be surprised if Nokia Technologies will file for more arbitration settlements after this acquisition.