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Nokia confirms it will receive more than it gives to Microsoft in 2013

Posted: , by Victor H.

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Nokia confirms it will receive more than it gives to Microsoft in 2013
Nokia will has received more money from Microsoft than it has paid for Windows Phone royalties, the company said today in a 20-F filing. Microsoft has been paying Nokia $250 million to support its tough transition from Symbian to Windows Phone as its one and only smartphone platform.

Nokia on the other hand still has to pay an undisclosed amount of money to license every device it sells that is running on Microsoft’s Windows Phone.

And while over the whole period of the agreement Nokia will have to pay more to Microsoft, in 2013, the balance sheet will be in its favor as the amount it receives as platform support from Microsoft will exceed the money Nokia pays for licenses.

Here is the Microsoft part of Nokia’s 20-F filing:

Our agreement with Microsoft includes platform support payments from Microsoft to us as well as software royalty payments from us to Microsoft. Under the terms of the agreement governing the platform support payments, the amount of each quarterly platform support payment is USD 250 million. We have a competitive software royalty structure, which includes annual minimum software royalty commitments that vary over the life of the agreement. Software royalty payments, with minimum commitments are paid quarterly. Over the life of the agreement, both the platform support payments and the minimum software royalty commitments are expected to measure in the billions of US dollars. Over the life of the agreement the total amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitment payments. As of the end of 2012, the amount of platform support payments received by Nokia has exceeded the amount of minimum software royalty commitment payments made to Microsoft, thus the net cash flows have been in our favor. As a result, the remaining minimum software royalty commitment payments are expected to exceed the remaining platform support payments by a total of approximately EUR 0.5 billion over the remaining life of the agreement. However, in 2013 the amount of the platform support payments is expected to slightly exceed the total amount of the minimum software royalty commitment payments, thus the net cash flows are still expected to be slightly in our favor. In accordance with the terms of the agreement, the platform support payments and annual minimum software royalty commitment payments continue for a corresponding period of time. We have recognized a portion of the received platform support payments as a benefit to our Smart Devices cost of goods sold and the remainder as a liability as part of accrued expenses and other liabilities on our balance sheet.


source: Reuters

39 Comments
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posted on 07 Mar 2013, 09:43 9

1. Andrea (banned) (Posts: 52; Member since: 07 Mar 2013)


nokia=ms the biggest patenttroll in the history.

Elop the trojan!

posted on 07 Mar 2013, 09:47 24

4. windroid (unregistered)


Go play with your dolls

posted on 07 Mar 2013, 10:03 9

10. RiseAgainst94 (Posts: 271; Member since: 03 Mar 2012)


You're mental.

posted on 07 Mar 2013, 10:22 5

12. wendygarett (unregistered)


Nokia will tumble together with Microsoft :)

posted on 07 Mar 2013, 09:47 4

2. windroid (unregistered)


.....

posted on 07 Mar 2013, 09:47 7

3. SIGPRO (Posts: 348; Member since: 03 Oct 2012)


I just heard that Nokia will join Apple to secure injunction against Samsung!
I like Nokia but i don't like Apple or Samsung....but what WTF Nokia?

Apple American company, Nokia is from Finland and Elop is American.....i smell something nasty here!

posted on 07 Mar 2013, 09:49 6

5. windroid (unregistered)


You have to understand first what is at stake, then you may comment about it.

posted on 07 Mar 2013, 10:31 3

14. sprockkets (Posts: 939; Member since: 16 Jan 2012)


Banning products for violating a tiny insignificant feature?

Like the douche bag germans wanting to destroy android handsets for being able to send 160+ character text messages as one?

Perhaps you and Nokia don't understand the phrase, "It cuts both ways."

posted on 07 Mar 2013, 11:23 3

19. UrbanPhantom (Posts: 947; Member since: 30 Oct 2012)


Who are you to decide what constitutes insignificant volations? Let the courts decide, and the results will speak for themselves...

posted on 07 Mar 2013, 13:03 1

30. Taters (Posts: 2373; Member since: 28 Jan 2013)


Unfortunately the US court system is horrible and Nokia supporting it is just brutal.

posted on 07 Mar 2013, 14:14 2

33. sprockkets (Posts: 939; Member since: 16 Jan 2012)


That IS what the court decided dumbass.

posted on 07 Mar 2013, 09:50 9

6. Andrea (banned) (Posts: 52; Member since: 07 Mar 2013)


I used to like nokia, but today they are just f'''' up.

nokia = MS

posted on 07 Mar 2013, 11:09 2

16. SamsungFan (Posts: 201; Member since: 16 Apr 2012)


They made the wrong decision by choosing wp.
And whatever nokia trolls say nokia is going to fall if they didn't fire elop and stop using wp.

posted on 07 Mar 2013, 11:32 8

21. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


well samsung troll thats your blinded one sided opinion. you cant see past your hate for anything that isnt samsung or android.

your comments means least on this site as your just another fanboy. nokia are gaining traction with wp8 and have brought some excellent devices out

stop hating choice

posted on 07 Mar 2013, 11:18 6

17. windroid (unregistered)


Turn your hate into constructive criticisms.
They will be welcome.

posted on 07 Mar 2013, 10:01 7

9. RiseAgainst94 (Posts: 271; Member since: 03 Mar 2012)


Elop is Canadian

posted on 07 Mar 2013, 11:48

24. alterecho (Posts: 958; Member since: 23 Feb 2012)


Thought he was British, from his accent.

posted on 07 Mar 2013, 09:55 10

7. zippolite28 (Posts: 100; Member since: 28 Sep 2012)


What's wrong dude... don't hate nokia for any reason...
They just took some wrong steps
But still... its almost like every smartphone today out in compition is all because of nokia

posted on 07 Mar 2013, 10:25 3

13. wendygarett (unregistered)


It's Nokia fans we are hating for :(

posted on 07 Mar 2013, 11:03 7

15. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


so now your just a useless troll, following the crowd and been pretty pointless....not like you have talked any sense anyway.

about time you were banned for trolling

posted on 07 Mar 2013, 11:20

18. zippolite28 (Posts: 100; Member since: 28 Sep 2012)


Grow up bro I am using galalxy note ... and ... which smart phones did u use the most ... 6600... in those days

posted on 07 Mar 2013, 11:59 1

25. GALAXY-STORM (Posts: 328; Member since: 13 Oct 2012)


Actually I used nokia phones too. Hating the fans won't make any sense wendy.

posted on 08 Mar 2013, 08:26

39. xperiaDROID (Posts: 4817; Member since: 08 Mar 2013)


I hate Nokia because it killed Symbian

posted on 07 Mar 2013, 09:57

8. valapsp (Posts: 442; Member since: 12 Aug 2011)


will has received?

posted on 07 Mar 2013, 10:15 5

11. Whateverman (Posts: 3158; Member since: 17 May 2009)


Microsoft will own Nokia very shortly, the hand writing is on the wall. Apple attacking Android on all fronts. Microsoft attacking Google on all fronts and now they're joining forces in court too. At what point do you just shut up and just improve your products to the point where you actually EARN the number one position instead of patent trolling and sueing for it?

posted on 07 Mar 2013, 11:31 7

20. UrbanPhantom (Posts: 947; Member since: 30 Oct 2012)


You seem to believe that these companies should be willing to give away their intellectual property and tecnological developments for free. So then, why don't you open the doors to your own house? Do not complain if your neighbors steal whatever property that you have inside, since that is what you are proposing...

Both Apple and Nokia have developed many different things, and Android would likely not exist today as it is if not for the competition. However, that does not mean giving Samsung and Google free access to property and material to which they have no right. If they lose in court, then so be it!

posted on 07 Mar 2013, 12:37

28. Whateverman (Posts: 3158; Member since: 17 May 2009)


Since when is a rectangle an intellectual property? Oh yeah, since Apple patented it. Samsung deserved to be sued for placing squares behind downloaded apps, that was a blanket attempt to make TouchWiz look like the iPhone. But a rectangle with round edges could be anything from a widow on a bus, to an electronic picture frame. To allow apple to own something that has already existed is wrong, period. Companies in other countries now have the rights to rain water, how long before that happens here?

Are you expecting me to bow to Nokia or Apple for what they've done in this new age of cellphones? I hope not! Why is it that other OS fans feel Android fans have to pay homage to these companies with every article? My comment is simply about second place and third place not earning there way back to the top. If that hurts to hear, you gotta take that up with them. I'm fans of all these companies products, but wrong is wrong whether it's Google, Nokia, or Apple and I just call it like I see it. And in this case, all I see are two companies that can't handle competition.

posted on 07 Mar 2013, 13:07 2

31. Taters (Posts: 2373; Member since: 28 Jan 2013)


Oh please! Just shut the hell up. Apple is basically stealing and suing Samsung for it and Nokia is supporting it.

A more accurate analogy would be Apple breaking into your house, stealing an item from your house and then suing you for stealing when you take it back.

posted on 07 Mar 2013, 23:48

38. No_Nonsense (Posts: 826; Member since: 17 Aug 2012)


Oh really, consider this: You have a patent that's very broad or innovative. I make a device using the same patent without your permission/paying you the royalties. Then, in the ensuing court battle, the court orders me to pay you a fine, and you to license the innovative technology against your wishes. So how would you feel? The fact is apple shouldn't have been granted the broad patents in the first place and now they should be revoked, but companies just shouldn't license their tech against their wishes particularly if its innovative/groundbreaking.

posted on 07 Mar 2013, 11:40 1

22. NokiaFTW (Posts: 770; Member since: 24 Oct 2012)


I think Microsoft will buy Nokia just for the patents , just like what Google did with Motorola .

posted on 07 Mar 2013, 11:40

23. ddxmms (Posts: 141; Member since: 09 Feb 2012)


worst deal ever !

posted on 07 Mar 2013, 12:15

27. GALAXY-STORM (Posts: 328; Member since: 13 Oct 2012)


Come on Ballmer, you are shaking hands with the wrong guy. If you want your wp8 market to rise substantially you should be shaking it with someone who has the ability to produce devices at the highest level and flood the market all over the globe with the amazing marketing ability.

posted on 07 Mar 2013, 12:49 5

29. Whateverman (Posts: 3158; Member since: 17 May 2009)


What? The 920 IS a high quality phone, WP8 just isn't as appealing to the general consumer as Android or iOS. I know, I know...many Nokia/WP8 fans are going to read that as a dis to WP, but Im not saying its a bad OS. All I'm saying is many people just aren't interested in it.

posted on 07 Mar 2013, 13:08 2

32. Taters (Posts: 2373; Member since: 28 Jan 2013)


I have lost all my respect for them and will never purchase a Nokia product ever again.

posted on 07 Mar 2013, 14:16 2

35. Sterijoana (Posts: 32; Member since: 18 Feb 2013)


Cool! You just lost the respect a while ago? You sound like you never had it!
Double cool to know you will never purchase a Nokia product ever again, it's almost breathtaking!! Readers here care so much about it that It should be certified as the hottest news of PA history!! keep spewing your useless hatred on Nokia as much as you can Tater, they will survive with or without your kind co-operation.

posted on 07 Mar 2013, 14:41

36. Taters (Posts: 2373; Member since: 28 Jan 2013)


Oh I had a lot of respect for them. My first phone was a Nokia and I really wanted the N95 at one point. I even purchased a Lumia 800.

As for them surviving without my support, probably, but I am sure they would rather return to the glory days where everyone had a Nokia. Well, I for one will never support them again thanks to their views on the patent law in America.

posted on 07 Mar 2013, 14:14

34. rusticguy (Posts: 2811; Member since: 11 Aug 2012)


Surviving on M$ COUPONS like Novel did years back

N for Novel
N for NOKIA

Lets see how long the COUPONS carry on
:)

posted on 07 Mar 2013, 17:25 2

37. kushki (Posts: 49; Member since: 19 Nov 2012)


Nokia can do better if MS can pull their head out of their A** ..... Right now Nokia is just a bitch of MS ... MS should really give more attention to WP platform.... it is good but not complete even though it is more than 2 years old now..... this is not the way to compete with android/ios/BB10

posted on 09 Mar 2013, 17:14

40. Timmehor (Posts: 599; Member since: 09 Mar 2013)


There is NO way Nokia will be bought by Microsoft, Motorola was in a much worst situation financially and brand wise when they were bought by Google. Windows Phone is at least different to the very plain phone landscape of android, its good we are seeing more OS's, adds variety. (Sailfish, Firefox OS, MeeGo, WP, Black Berry, etc)

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