Nokia Signs Patent-Licensing Deal With RIM, Ends Dispute

By SiliconIndia   |   Thursday, 27 December 2012, 09:23 Hrs
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Bangalore:  The beleaguered Finnish mobile-maker, Nokia has agreed to sign a patent-licensing deal with Research In Motion (RIM) for getting some economic leverage and at the same time ending the legal disputes between the mobile makers, reports The Economic Times.

RIM will make a one-time and “ongoing” payment to Nokia, as the Finnish mobile maker said. The financial parts of the deal weren’t disclosed.    

With Nokia’s recent no performance where its shares declined 2.2 percent, as Helsinki Time reported, the deal could be a breather for the struggling Finnish company.

Nokia is trying to add up some moolah from its patent portfolio. It may get a one-time payment of $150 million to $200 million, and about $50 million annually over the next 10 to 15 years, depending on when the patents expire, according to estimates by Hannu Rauhala, an analyst at Pohjola Bank Oyj in Helsinki.

Previous gig by Nokia to strengthen its economic position is by selling units and assets including its headquarters. Nokia’s cash reserve has shrunk by about half in the past five years and will drop below 3 billion euros by year-end, as estimated by Standard and Poors, an American financial services company, in August.    

“The impact of this deal is twofold: on the one hand, it shows the upside potential for Nokia to cash in from similar legal cases,” said Sami Sarkamies, an analyst at Nordea Bank AB in Helsinki, as Bloomberg reported. “Secondly, the financial impact will help Nokia beef up its cash position and bring in new revenues that give Nokia time to turn its loss-making smartphone unit around.”

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