Nokia sells 500 patents to Vringo for $22 million

Nokia sells 500 patents to Vringo for $22 million
Nokia has received $22 million dollars from Vringo in exchange for 500 patents. Some of the intellectual property involved covers 2G, 3G and 4G technology. Vringo owns a portfolio of mobile patents which it licenses to tech companies. Of the 500 patents, 109 of them were issued in the United States. As part of the deal, Nokia will continue to use the patents covered by the transaction on a "non-exclusive" basis. Once the revenue generated by the patents exceeds $22 million, Nokia will be entitled to receive a 35% share of the dollars generated by the IP. The $22 million will be paid to Nokia on or before September 14th, and to fund the deal Vringo sold off 9.6 million of its shares.

The Finnish handset manufacturer is currently in the midst of a restructuring after reporting a $1 billion operating loss for the second quarter and has already shed some assets not vital to the success of the company. For example, luxury handset producer Vertu was sold in June, and on Thursday morning, Nokia's Qt software business was sold to Digia.

The goal with these sales is to keep the company on its feet until Windows Phone 8 models are launched. Nokia hopes the new build of Microsoft's mobile OS will allow it to compete with the Apple iPhone and Android models.

With patent trials all over the news these days, Nokia had a clause inserted in the contract that allows them to re-acquire the patents for a nominal amount should Vringo take Nokia or its affiliates to court over these specific patents. Nicely played, Nokia. Nicely played.

source: TheNextWeb via SlashGear

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9 Comments

1. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

500 patents for $22 million, quite cheap probably not really important patents.

2. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 2011

Not important until someone uses one of them and has a great idea that really runs with it. Then it's a worthwhile patent, I assume that Nokia, Motorola and other og mobile companies don't have vague and stupid patents that are hard to understand or have a scope that encompasses too much.

3. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

"Not important until someone uses one of them and has a great idea that really runs with it." Agree. But probably Nokia don't see great perspective in these and that's why they are relatively cheap.

9. steelicon

Posts: 318; Member since: Apr 02, 2011

Not Nokia but Elop and Ballmer.

7. pikapowerize

Posts: 1869; Member since: May 03, 2012

this just show how stupid is the nokia's management now! 500 patents for only $22M?! stupid stupid stupid!!! i thought PA wrote it wrong i though $22 Billion not Million....this is just stupid.. RIM was granted by just one patent and it cost $147M.. and its only one!!! f**k ELOP and the new management and board!!! they even sell one of the best software ever!! the QT!!!! ughhhh... nokia... you are making tech fans sick!!!

4. Nokia-Arte

Posts: 42; Member since: Aug 09, 2012

Nokia sold vertu. Now there selling patents. Are they in desperate needs? I just don't understand why don't they fire Elop! Nokia have even or discontinued making the 8800 series.

5. snowgator

Posts: 3617; Member since: Jan 19, 2011

What were they gonna do with the luxury line OS? What were they going to do with Qt, which was needed to port Symbian apps to Meego? These patents may even be decent, as Nokia stands to continue making money off of them down the road, are protected against litigation, and they can be required if needed. There are a lot of things Nokia can be slammed for, but these three deals make sense. Nokia wants to be a premier hardware maker, not a software company. They want a streamlined ecosystem. Even if WP doesn't work out, they will be a leaner company able to compete with whatever OS (Android? Tizen? Open sourced WebOS? BB10?) they chose and turn larger profits per handset. I feel like such a Nokia apologist, and I have only owned one basic candy bar from them. How did I get this job on Phone Arena?

6. Dunknown

Posts: 84; Member since: Jul 23, 2012

Nokia should keep the patents and sell them at a higher price. If not mistake Nokia spend billions of pounds on the research and they just sold 500 for only $22 million. I think 22 million pounds is possible but not dollar.

8. pikapowerize

Posts: 1869; Member since: May 03, 2012

i think the whole plan b or plan c is making nokia a cheap company and sell it self to any company intersted... your doing a great job on that elop!

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