Samsung extends patent agreement with Nokia for a further 5 years

Nokia has today announced the company has managed to have Samsung sign an extension to the party's patent licensing agreement. This extension will last a further five years, with the original agreement expiring at the end of this year. One thing is uncertain, however; just how much will Samsung be forking out to the Finnish company?

According to the press release, Samsung will pay out additional compensation to Nokia for the agreed period, kicking off from January 1st, 2014. Nokia has stated that the final figure for the license agreement will be decided in a binding arbitration, which is expected to be concluded during 2015. Here's what Paul Melin, Chief Intellectual Property Officer of Nokia, had to add to the announcement:

"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 adds that the company will retain its "industry-leading" portfolio following the transaction with Microsoft, and will continue to make money through innovation investment and by "actively managing its patent portfolio and licensing activities" - we've recently witnessed Nokia going on the offensive with the Finnish giant winning a patent battle against HTC.

Thanks to everyone who tipped us!

Rich Edmonds
Senior Editor, PC Build

Rich Edmonds is Senior Editor of PC hardware at Windows Central, covering everything related to PC components and NAS. He's been involved in technology for more than a decade and knows a thing or two about the magic inside a PC chassis. You can follow him over on Twitter at @RichEdmonds.

  • The enemy signing a treaty for peace
  • About time! If only Apple would do the same...
  • This definitely a win for Nokia
  • Wp we want interesting posts ..
  • D:
  • Omg.
  • I found it interesting because it demonstrates how two companies can get along and do things properly so as to avoid any future law suits.
    It also shows that Nokia are still relevant in the mobile phone business even after the inevitable sale to MSFT
  • Honestly, there's no point reasoning with such folk. Save your breath.
  • Yeah Rich, I realised a while back that all most people are interested in is news of any new Firmware update or some popular application for other platforms being made available for Windows Phone (especially if it is a free application).
    Any news that requires a bit of thinking is wasted on most people ;-)
  • :D seriously wpc ant having anything interesting since few days (compared to 22nd oct). But its okiee no need to hang yourself :P
  • Really? Okay, sure, let me just fetch my imagination helmet and conjure up some news that doesn't exist. Oh, wait...
  • +720
  • +925
  • Some of us sent this tip BC we found it interesting... So don't blame wpc.
  • Does this mean no further Samsung windows phones or just low end small price point devices?
  • No, it means that Samsung can continue with business as usual without treading on Nokias toes and ending up in court
  • Interesting posts are on the decline here....
  • Yeah, we need some juicy WP "Blue" leaks now that GDR3 is in the can.
  • +520
  • So grab your ball turn em blue until they leak.
  • I hope that was sarcastic.. Cz if there are so many leaks there wont be anything worth the surprise
  • I second that.
  • +620
  • Yea no wp news lately
  • Seriously wpc ant having anything interesting since few days (compared to 22nd oct).
  • Is there anything going on in Microsoft / Nokia development labs? I read every day about Google innovations, yet nothing on Microsoft! Still playing catch up? Is Stylus support coming to RT or WP8? Samsung has it on Android devices. Looks like MS/Nokia will soon lease patents from Samsung
  • If WP gonna be something like the Samsung Gnote, WP gotta have multitasking like window RT. And I prefer RT because of the dual windows. 6" screens are pointless without such features.
  • The "dry spell" in news was your opportunity to tear yourself away long enough to build an app worthy of appearing in the news.
  • If you follow android central they try and do weekly podcasts even if they are short. I would love to see small podcasts dedicated to app highlights. It has been pretty dry around here.
  • The companies are actually competitive to each other in a good way. Only the media manipulates tones and makes it look like war.
  • I can name a few outlets that are good at it.
  • Can we have a Samsung ativ tab with full windows for cheap please
  • I prefer Asus over Samsung. I have the Asus vivotab RT and the screen is phenomenal as compared to Samsung ativ tab. Thinner, maybe the thinnest tablet out today. Battery life is beyond belief. Build is excellent.
  • My question.  Why write this article and not say what patents is Samsung licensing?
  • Maybe it's thousands of different things or it's just confidential.
  • NOK stock lifter. Love it..
  • Exactly
  • Sometimes its great to have a patent, not publicize it, wait for another company make a product that violates the patent, let it sell, then sue da sh*t outta them when the product peaks. At least that's how it works in America.
  • Apple, Samsung and Blackberry have all signed patent deals with Nokia. I wonder why HTC is so stubborn to keep fighting Nokia in the courts. The funny thing is that they have lost a couple of them and are still appealing. I hope companies like Sony, LG, etc will at some point in time sign patent deals with Nokia. That would be good news for Nokia investors. I'm long on Nokia.
  • I think the point of Patent in my opinion is to spark innovation. If we don't have patent protection in place, Samsung would freely use everyone else ideas and rule the world!
  • Exactly.. Why create what you can steal?? Innovation and ideas are the new currency.
  • I don't know why people complain here about WPcentral no posting regular news, hey, not everyday things happens in the WP world!
  • This is why when Nokia hit $1.65 per share you should have bought. Nokia is looking very good  going onward.
  • I did, wish I would've bought more though.
  • Sound like me. I bought but should have bought more.
  • Even now at $7.75 per share at todays close it's still a good buy. not as good as $1.65 but decent You can look at Nokia to be a long term deal. two years could see the stock close to $20.00 again. it is a very smart company that is for the most part very willing to take that chance...
  • And why wouldn't they?? Ideas are the biggest, best forms of currency, not just for today, but for years to come. Why have an R&D department if you could just steal?? That is the oldest profession..
  • Good to hear. With the impending destruction of Nokia, these deals are the only thing that can eventually prevent them from certain bankruptcy.
    Now go sign some patent deals with Sony so that they can have pureview on their cameras and continue the Nokia tradition.
  • Sharing the Pureview technology with Sony??? HELL NO !!! let them come up with a similar technology on their own..  
  • If Nokia loses their D&S division to Microsoft, they won't have devices to use PureView on anymore. So they'll have to and would be smart in licencing it to anyone willing to pay for it. And Sony has the best camera phones in the market after Nokia. So it would only be natural...
  • But.. Wont Microsoft inherit the pureview tech along with the D&S division??? :O Pureview is an integral feature in Nokia's devices..
  • Correct, Microsoft can carry over the Pureview technology and keep it alive.
    Honestly, the way DJCBS responds to most news articles involving Nokia you'd think he actually wants the rest of Nokia Corp. to fail and go bankrupt.
    Nokia have done the smartest thing possible by agreeing the sale of their devices division to Microsoft and keeping hold of the other areas of the Nokia business that is still actually profitable. Their phones business was (and still is) dragging them down and losing money. But the other areas of the business are still making money for Nokia and will continue to do so as long as the likes of Apple and Samsung continue to compete in the Smartphone market.
    I have been reliably informed that Nokia are paid $10 for every iPhone that is ever sold. However, given the amount of money it costs in research and development to produce a new Lumia device the relatively low amount of Lumia phones actually sold (compared to sales of new Galaxy phones and iPhone's) Nokia are still losing money despite the popularity of WP8 Lumia phones.
    To me at least it's therefore a no-brainer why Nokia has taken the opportunity to offload an area of their business on to someone else. It means that Nokia can concentrate on the rest of the business that can actually make money for them and the shareholders.
  • Yes.. Even i think Nokia has done the right thing by selling off their D&S division.. People seem to think that its a bad idea, and that they'll never buy Lumia phones, if it is not from nokia.. Well that's bullshit.. If one is loyal to the platform and has an affinity for quality devices then he/she wouldn't really care about who manufactures/owns them.. And like you said.. Nokia's profits were being pegged down by the D&S division.. Nokia's Network Infrastructure division and Here Mapping division made a lot of profit in the last quarter..
  • Thanks gautam26, I'm glad that someone else understands the situation for what it actually is. Sure, it's a shame to lose the Nokia brand from mobile phones but we will eventually get over it and move on. It's not the first time a famous household name has been lost.
  • You are welcome.. :) my first device was a Nokia 3310, and I've been a good fan (not diehard) of Nokia since then.. But the first thing that came to my mind on hearing the Nokia-Microsoft deal was "Hell Yeah, more support for Lumia devices".. People should stop letting trivial things like mergers/acquisitions get to them.. "Remember Google-Motorola deal?? That is how the industry works.. Deal with it.." is what I would like to say to those people.. :P
  • Coincidentally my very first Nokia device was also a 3310 which I still have sitting in a cupboard at home. It actually still powers up and must be over 10 years old now. That was a quality phone. :D
  • yeah.. no matter how many times I dropped it, it simply refused to crack.. One hell of a phone that was !!! :P
  • Happy to see good patent news versus court settlements.
  • 620 :) yep they still care