LG Electronics and Nokia have formed a smartphone patent license agreement under which LG will pay Nokia royalties for use of its patents.LG has become the first major smartphone manufacturer to join the licensing program since Nokia divested its Devices & Services business to Microsoft in 2014, joining more than 60 licensees for Nokia’s 2G, 3G and 4G mobile communication technologies.
While Nokia agreed with Microsoft as part of the sale to not re-enter the handset market until 2016, it is still an active player in the smartphone space courtesy of its patent portfolio and licensing program.
Under its agreement with LG, Nokia stated royalty payment obligations will be subject to commercial arbitration, which is expected to conclude within a 1-2 year time frame.
“We are pleased to welcome LG Electronics to our licensing program,” Ramzi Haidamus, Nokia Technologies president, commented.
“We’ve worked constructively with LG Electronics and agreed a mutually beneficial approach, including the use of independent arbitration to resolve any differences. This agreement sets the scene for further collaboration between our companies in future.”
