Nokia-Microsoft deal facing approval delay in China, as local manufacturers fear higher licensing fees
According to the source, Chinese officials are taking a more prudent approach with the Nokia-Microsoft deal due to requests from local handset manufacturers, including Lenovo, ZTE and rising star Xiaomi. Apparently, domestic players are worried that Nokia may begin charging higher patent fees now that it no longer needs to protect its handset interests, as it has in the past. The quoted licensing fees until this point were generally about 2% of the end product's selling price. It's, therefore, not surprising to see Chinese manufacturers, who have been using price as a main competitive advantage, appear weary of a future raise in prices for tech they simply can't go without. At least not cheaply.
As you can guess, Nokia's patent portfolio is one of the biggest there is, and it includes some pretty underlying tech, that most now take for granted. Nokia is fixating on this very advantage, and is very likely contemplating turning licensing its patented tech into a cash-making machine. In a previous interview with Reuters, Nokia spokesperson Mark Durrant noted as much:
Nokia is expected to make upwards of a billion dollars in 2014 from licensing fees alone, a sum that would represent a solid increase on the $684 million that the company is expected to cash in for 2013.
source: Global Times via NokiaPowerUser
1. itsdeepak4u2000 (Posts: 2866; Member since: 03 Nov 2012)
No, I don't think they'll charge more money.
2. Antonyjoseph (Posts: 215; Member since: 06 Apr 2013)
Nice to see that there are Chinese companies who pay for patents.
5. dratomic (Posts: 476; Member since: 09 Oct 2013)
paying for some patent is ok. but some of them are for bullyin. look at some of appled patent...
6. taikucing (unregistered)
This is why I hate MS, rapes people's wallet. More evil than Apple.
8. UrbanPhantom (Posts: 949; Member since: 30 Oct 2012)
And since when do our former cold war enemies get to decide about the actions of western companies? North Americans and Europeans should ignore such delays, and disregard any obstacles put into place by foreign governments (including India, aka Nokia's tax issues).
9. rusticguy (Posts: 2828; Member since: 11 Aug 2012)
EU doesn't like Ameican companies either ...