Nokia Corporation NOK signed a new patent cross-license agreement with China's leading smartphone maker, Honor, covering both parties' fundamental inventions in 5G and other cellular technologies.
It is the fourth major smartphone agreement that Nokia has concluded in the past 12 months. The terms of the agreement were not disclosed.
However, its legal battles with other Chinese companies over patents continue, Reuters reported.
Nokia, formerly the top global mobile phone manufacturer, possesses a substantial patent portfolio encompassing vital technologies essential for phone manufacturing, the report read.
The licensing revenue derived from these patents accounted for 39% of the operating profit in 2022.
Nokia has engaged in ongoing legal conflicts with Chinese device manufacturers Oppo and Vivo across multiple countries since 2021 concerning the utilization of 4G and 5G patents, with no resolution to date, the report added.
"It is the fourth major litigation-free smartphone agreement that Nokia has concluded over the past twelve months and highlights once again the strength of Nokia's patent portfolio and decades-long contributions to cellular standards and other technologies," Susanna Martikainen, Chief Licensing Officer Mobile Devices at Nokia said regarding the Honor deal.
On December 30, the company said it will not achieve its 2023 sales outlook, as licensing renewal discussions are expected to continue into 2024.
Nokia is protecting the value of its patent portfolio versus achieving certain timelines for resolution, the company said.
The company will report its fourth quarter and full year 2023 financial results on January 25, 2024.
Read Next: Nokia Projects Missing 2023 Sales Targets Due To Prolonged Licensing Talks
Price Action: NOK shares are trading higher by 0.29% to $3.46 on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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