SAMSUNG has agreed to extend its patent agreement with Nokia, due to expire at the end of 2013, for an additional five years.
Nokia is planning to retain its patent portfolio despite the proposed sale of its phone business next year to Microsoft. According to the deal, Nokia will receive additional compensation from Samsung, starting in 2014.
The two technology giants have entered into binding arbitration to come to a price for the deal, which is expected to be concluded during 2015.
“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,” said Nokia intellectual property chief Paul Melin.
Recent optimism surrounding Nokia Siemens Networks (NSN) – one of the three divisions that will remain once Nokia sells its devices and services division to Microsoft in the first quarter of 2014 – has lifted Nokia’s share price 17 per cent over the last week.
Last week Nokia reported its revenue fell 22 per cent year-on-year to €5.6bn (£4.8bn) for the quarter ending 30 September, on the back of its record 8m Lumia smartphone sales during the quarter.
Nokia’s share price closed up 1.05 per cent yesterday at €5.78 per share. Details of the finances and contents of the patent deal have not been disclosed.