Nokia and Oppo Mobile Telecommunications have recently announced a multi-year patent cross-license agreement, bringing an end to their long-standing dispute over Oppo’s use of Nokia’s patented 5G technology in its devices.
Previously, both companies had a 5G patent license agreement that was valid from 2018 until the end of June 2021. However, as they failed to reach a new agreement, Nokia took legal action against Oppo in multiple countries.
Fortunately, this disagreement has now been resolved with the signing of the new agreement. Nokia stated that the agreement covers all pending patent litigation between the two parties across different jurisdictions. As part of the deal, Oppo will be required to make royalty payments and catch-up payments to cover the periods of non-payment.
Although specific details about the agreement were not disclosed, Nokia expects to start recognizing net sales from this deal in the first quarter of 2024.
Nokia Technologies, the unit responsible for managing Nokia’s patent portfolio, expressed confidence that its annual net sales run-rate will return to an estimated range of 1.4 billion to 1.5 billion euros ($1.52 billion-$1.63 billion) in the midterm.
It’s worth noting that Nokia’s patent portfolio is the result of significant investment, with over EUR140 billion dedicated to research and development since 2000. The portfolio consists of approximately 20,000 patent families, including more than 6,000 patent families essential to 5G technology.