Nokia sent out a presser that it has extended the secretive agreement it had with Samsung on mobile related patents for another five years. The kicker is that the price Samsung will have to pony up will not be known until 2015 rolls in.
It will ultimately be settled in a binding arbitration then, likely with a lot of variables clearer, such as Samsung's total phone turnaround, and Nokia being a separate entity at the time, that will have the rights on the vast patent portfolio after Microsoft acquires the Devices & Services division next year
“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”, bragged Paul Melin, Chief Intellectual Property Officer for Nokia.
Espoo, Finland – Nokia announced that Samsung has extended a patent license agreement between Nokia and Samsung for five years. The agreement would have expired at the end of 2013. According to the agreement, Samsung will pay additional compensation to Nokia for the period commencing from January 1, 2014 onwards, and the amount of such compensation shall be finally settled in a binding arbitration 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 Paul Melin, Chief Intellectual Property Officer of Nokia.
Nokia will retain its industry-leading patent portfolio following the proposed transaction to sell substantially all of its Devices & Services business to Microsoft and sees further opportunity to create value by investing in innovation, and by actively managing its patent portfolio and licensing activities.