Nokia and Lenovo have settled their patent litigation by entering into a “multi-year, multi-technology” cross-licensing agreement that will allow the two companies to use each other’s innovations.
The initial disagreement was sparked in 2019 when Nokia alleged that Lenovo had infringed more than 20 of its video compression patents.
Litigation has been initiated in several countries around the world, the most notable case in Germany where a court has issued an injunction and a product recall.
By capping its license revenues at € 3, Nokia hopes to avoid such arguments and instead benefit from the deployment of 5G. By the time the standards are finalized later in the year, Nokia expects it will have a “significant position” in SEP, which means it should make significant gains.
“Nokia’s innovation, combined with our commitment to open standardization, has helped build today’s networks and lay the foundation for 5G / NR,” said Ilkka Rahnasto, head of patents at Nokia. “This announcement is an important step in helping companies plan the introduction of 5G / NR compatible mobile phones, with the first commercial launches expected in 2019.”
However, the capped rates only apply to mobile phones. 5G networks are expected to connect all kinds of devices, such as PCs, routers and industrial equipment, and Nokia will determine the license rates for each of them separately.
The first commercial 5G services will go live in the United States later this year, offering wireless fixed broadband access (FWA). The first 5G smartphones will go on sale in 2019 with the launch of the first 5G networks in the UK by 2020.