Nokia has recently announced a multiyear patent cross-license agreement with Vivo, bringing an end to a long-standing dispute between the two companies. The dispute arose due to Vivo’s use of Nokia’s patented 5G technology in its smartphones. Although the previous patent license agreement between Nokia and Vivo expired in 2021, the companies failed to reach a new deal, leading Nokia to initiate legal action across various countries.
Fortunately, Monday’s agreement resolves all pending patent litigation between Nokia and Vivo in all jurisdictions. As part of the agreement, Vivo will make royalty payments to Nokia, including catch-up payments. While the exact terms of the deal remain undisclosed, Nokia has stated that it will begin recognizing net sales from this agreement in the first quarter of 2024.
Jenni Lukander, the president of Nokia Technologies, expressed her satisfaction with this development, stating, “This is the sixth major smartphone patent license agreement we have signed in the past thirteen months, and we have now almost completed our smartphone license renewal cycle.” Nokia has previously reached similar agreements with industry giants such as Apple, Samsung, Huawei, Honor, and Oppo.
Additionally, Nokia remains confident in the future success of Nokia Technologies, the division responsible for managing the company’s patent portfolio. It expects the unit to achieve an annual net sales run-rate of 1.4 billion to 1.5 billion euros ($1.51 billion – $1.62 billion) in the midterm.