Nokia Signs 5G Patent Cross-license Deal With OPPO, Ending All Patent Litigation

(RTTNews) - Finnish network company Nokia (NOK) announced Wednesday that it has signed a multi-year global patent cross-license agreement with Oppo, a Chinese consumer electronics manufacturer, including cross-licensing for 5G standard-essential patents.

Both Nokia and Oppo have been in a 5G patent dispute for over two years regarding patent payments. The company said the agreement resolves all pending patent litigation between the parties, in all jurisdictions.

Under the latest deal, Oppo will make royalty payments, along with catch-up payments to cover the periods of non-payment. The terms of the agreement remain confidential as agreed between the parties.

Nokia said the agreement is consistent with the assumptions it has disclosed in the commentary with respect to Nokia Technologies long-term outlook in its third-quarter results. The company will begin recognizing net sales from the deal, including catch up payments covering non-payment during the dispute period, in the first quarter.

Nokia Technologies is progressing towards the conclusion of the smartphone renewal cycle and is making good progress in its growth areas of automotive, consumer electronics, IoT and multimedia. It remains confident that its annual net sales run-rate will return to EUR 1.4 to 1.5 billion in the mid-term.

Jenni Lukander, President of Nokia Technologies, said, "We are delighted to have reached a cross-license agreement with OPPO that reflects the mutual respect for each other's intellectual property and Nokia's investments in R&D and contributions to open standards. … The new agreement - along with the other major smartphone agreements we have concluded over the past year - will provide long-term financial stability to our licensing business."