Telecommunications giants Nokia and Samsung have agreed to a patent portfolio cross-licensing deal.
(CCM) — Nokia and Samsung have agreed to a technology swap that is intended to help Nokia's advanced technology business and give Samsung's mobile device operations a boost. The agreement announced today involves cross-licensing so that each company can use technologies patented by the other. Although no specific technologies are mentioned in the announcement, Nokia believes that the deal will result in its Nokia Technologies business growing to a run rate of approximately €950 million ($1.1 billion) by the end of 2016. For its part, Samsung will get access to "a wealth of technologies relevant to mobile devices and beyond" from Nokia Technologies, Nokia Networks, and Alcatel-Lucent — acquired by Nokia earlier this year — according to Ramzi Haidamus, President of Nokia Technologies.
In May, Nokia confirmed that it had exited the mobile device business by licensing the Nokia brand and some of its intellectual property to another Finnish company called HMD. Under the terms of that agreement, Nokia Technologies will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both brand and intellectual property rights. HMD is led by former-Nokia and Microsoft executive Arto Numella.
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