Nokia prices the ransom fee it will demand for each and every 5G phone license


This article refers to Nokia the network equipment provider, not the Nokia phone brand which is owned by HMD Global

The finalized 5G network standards are going to be announced later this year, but many manufacturers like Qualcomm or Samsung have already announced wireless modems that will meet or exceed them. Nokia, one of the mobile pioneers, network equipment included, will be owning part of the so-called standard essential patents (SEPs) around the technology and will demand everyone pay for the privilege to use them.

"Nokia has committed to license on fair, reasonable and non-discriminatory (FRAND) terms, in line with the applicable intellectual property rights policies of relevant standard setting organizations (SSOs)," says the statement the company sent to us. 

The licensing fee? Well, 3 EUR may not sound that much on a per unit basis, but considering the hundreds of millions of phones that will support the so-called 5G New Radio standard, the potential windfall could be significant. 

The good news is that this fee is for all of Nokia 5G SEP portfolio, and is capped, so manufacturers won't deal with increases in the future. Unfortunately, they also have to pay companies like Google, Qualcomm and even Microsoft for their mobile patents, so the intellectual property sums can quickly add up on a per unit basis, too.

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2 Comments

1. meanestgenius

Posts: 22522; Member since: May 28, 2014

A company gotta eat! Lol, seriously, this isn’t a bad price to pay for a licensing fee at all. Nokia has been a pioneer of new technologies for quite some time now, and it’s only fair that they are paid for the use of their IP. It’s because of companies like Nokia that we enjoy many things that the communications networks bring today.

2. Venom

Posts: 3833; Member since: Dec 14, 2017

Sounds like greed will be the cost for innovation. A company may have to eat, but this is not going to be good in the long term. We are trying to advance tech, but we have companies like Nokia that want a chunk of that pie. When others start wanting a piece, that pie gets smaller and smaller. It's because of decisions made by companies like Nokia that it's going to be time consuming before 5G becomes standard. Just my thoughts on the matter without giving myself a high five.

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