Nokia announced today that an agreement with Samsung, pursuant to a binding arbitration process, was reached regarding compensation due to Nokia for a variety of patents being utilized by Samsung. The settlement is expected to yield Nokia approximately $200 million euros annually. Including some funds to be paid for previous periods while the case was underway, Nokia anticipates receiving slightly more than 1.0 billion euros for Samsung’s use of the patent portfolio. Despite the positive impact on Nokia’s bottom line, investors do not seem happy and were expecting a larger settlement.
The case was being heard before the International Court of Arbitration of the International Chamber of Commerce. Both Samsung and Nokia had previously agreed to live with the results of the arbitration process. The compensation being looked at commenced on January 1, 2014 and is expected to last through the end of 2018 when the companies will have to negotiate a new deal.
Nokia currently has a similar dispute ongoing with LG Electronics and a new contract with Apple will need to be negotiated in the new few years. Nokia was once “the” brand in mobile phones, but fell by the wayside with the rise of smartphones. However, their technology is still ubiquitous as seen by the number of manufacturers that license patents from Nokia.