Nokia Corp settles patent dispute with China’s Lenovo Group
- Nokia Corp settles patent dispute with China’s Lenovo Group.
- The telecom firm did not disclose the financial terms of the settlement.
- Lenovo to make a net balancing payment to Nokia Corporation.
Lenovo shares that you can conveniently trade online via a range of user-friendly apps opened at £1.02 per share on Wednesday and are currently trading at 97 pence. In comparison, the stock had started the year 2021 at a lower 71 pence per share.
Nokia did not disclose the financial terms of the settlement
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Nokia refrained from disclosing the financial terms of the settlement, but highlighted that it will receive a net balancing payment from the Chinese multinational. Chief Intellectual Property Officer of Lenovo Group, John Mulgrew, commented on the news on Wednesday and said:
“The global accord struck will enable future collaboration between our companies for the benefit of customers worldwide.”
Nokia and Lenovo indulged in a patent dispute related to video compression technology in 2019. On Wednesday, the telecommunications company said it reached a settlement with Lenovo that resolved all proceedings between the two companies, including pending patent litigation, in all jurisdictions.
In October 2020, Orange Belgium partnered with Nokia to renew its radio gear networks ahead of 5G roll-out.
Currently, the Finnish multinational has roughly 20 thousand patent families. 3,500 of these are considered essential to 5G. As per Nokia, it invested over £111.41 billion in research and development over the past two decades.
In separate news from China, electric scooter maker Niu Technologies expanded its product line-up with four electric bike models and the first kick-scooter model in Europe and the United States.
Nokia Technologies President’s comments on Wednesday
President Jenni Lukander of Nokia Technologies said on Wednesday:
“The agreement reflects Nokia’s decades-long investments in R&D and contributions to cellular and multimedia standards. We appreciate, and very much respect, the constructive spirit Lenovo brought to our negotiations and look forward to working together to bring further innovation to their users around the world.”
Nokia shares jumped more than 1% on market open on Wednesday but lost the majority of the intraday gain later on. Including the price action, the stock is now trading at £2.96 per share. In comparison, Nokia had plummeted to as low as £2.01 per share in March 2020, when the impact of the COVID-19 crisis was at its peak.
At the time of writing, the Finnish multinational telecommunications firm has a market capitalisation of £16.96 billion.