Why Nokia’s victory in a patent dispute with Samsung did not meet Nokia’s investor expectations
Despite the fact that Nokia no longer makes phones, it continues to receive royalties for "past services". In 2013, the company sold the phone development division to Microsoft .
The International Court of Arbitration ruled on a patent dispute between Nokia and Samsung . The Finnish company will receive compensation from Samsung for the renewal of the license agreement between them from January 1, 2014 for a period of five years. The company previously estimated the amount of compensation in "hundreds of millions of euros."
In 2013, Nokia turned to arbitration, hoping to increase licensing fees for the period up to 2018. The agreement between the parties provides for such an increase, and Samsung will immediately pay the amount for the past two years.
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Thanks to compensation, Nokia’s licensing revenue is now estimated at 800 million euros per year.
The revenue of the technological division of Nokia, which includes licensing operations, in the fourth quarter of 2015 will reach 400 million euros, including compensation, and for the whole of last year - about 1.02 billion euros, according to a company press release.
In Nokia they note that recourse to independent arbitration is the best way to resolve controversial issues. In the period from 2016 to 2018, Nokia expects to receive at least 1.3 billion euros for already settled and still in the process of considering patent disputes, including a license agreement with LG Electronics. This company uses about 60 Nokia technologies, including 2G, 3G and 4G.
Nokia will publish the official statements for the fourth quarter on February 11.
According to estimates by Kepler Cheuvreux analyst Sebastian Stabovich, as a result of the court’s decision, Nokia’s annual revenue will increase by 200 million euros, which is less than its previous estimate (250 million euros).
Despite the success in court and the decision on compensation, investors are not satisfied with the company's financial results, as well as the amount of compensation. They were counting on more. Previously, the company Ericsson in a patent dispute with Apple has achieved compensation of about 1.2 billion euros, reminds Reuters.
As a result, Nokia shares at Helsinki auction on Monday fell 9.9% in price. However, the company still has hope for success.
In the summer of 2015, Nokia CEO Rajiv Suri said that from 2016, the company will return to the development of mobile devices. Nokia will develop the design of smartphones and sell licenses to third-party manufacturers, for example, Foxconn. They will be engaged in the production and release of devices. But this could not start before 2016, since Nokia had hands tied by agreement with Microsoft.
The International Court of Arbitration ruled on a patent dispute between Nokia and Samsung . The Finnish company will receive compensation from Samsung for the renewal of the license agreement between them from January 1, 2014 for a period of five years. The company previously estimated the amount of compensation in "hundreds of millions of euros."
In 2013, Nokia turned to arbitration, hoping to increase licensing fees for the period up to 2018. The agreement between the parties provides for such an increase, and Samsung will immediately pay the amount for the past two years.
')
Thanks to compensation, Nokia’s licensing revenue is now estimated at 800 million euros per year.
The revenue of the technological division of Nokia, which includes licensing operations, in the fourth quarter of 2015 will reach 400 million euros, including compensation, and for the whole of last year - about 1.02 billion euros, according to a company press release.
In Nokia they note that recourse to independent arbitration is the best way to resolve controversial issues. In the period from 2016 to 2018, Nokia expects to receive at least 1.3 billion euros for already settled and still in the process of considering patent disputes, including a license agreement with LG Electronics. This company uses about 60 Nokia technologies, including 2G, 3G and 4G.
Nokia will publish the official statements for the fourth quarter on February 11.
According to estimates by Kepler Cheuvreux analyst Sebastian Stabovich, as a result of the court’s decision, Nokia’s annual revenue will increase by 200 million euros, which is less than its previous estimate (250 million euros).
Despite the success in court and the decision on compensation, investors are not satisfied with the company's financial results, as well as the amount of compensation. They were counting on more. Previously, the company Ericsson in a patent dispute with Apple has achieved compensation of about 1.2 billion euros, reminds Reuters.
As a result, Nokia shares at Helsinki auction on Monday fell 9.9% in price. However, the company still has hope for success.
In the summer of 2015, Nokia CEO Rajiv Suri said that from 2016, the company will return to the development of mobile devices. Nokia will develop the design of smartphones and sell licenses to third-party manufacturers, for example, Foxconn. They will be engaged in the production and release of devices. But this could not start before 2016, since Nokia had hands tied by agreement with Microsoft.
Source: https://habr.com/ru/post/298324/
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