Matt is the former News Editor for The Next Web. You can follow him on Twitter, subscribe to his updates on Facebook and catch up with him Matt is the former News Editor for The Next Web. You can follow him on Twitter, subscribe to his updates on Facebook and catch up with him on Google+.
Nokia, believing it can capitalise on the strength of its patent portfolio, will see around 2,000 of its patents and applications acquired to Canada-based Mosaid, which will earn both companies additional revenues from settlements and licensing deals.
Nokia’s patents will now be owned by a new company formed by Mosaid, earning a third of the royalties from the patent portfolio. It won’t pay Nokia for the patents, instead it is expected to generate income from lawsuits and settlements from potential patent infringers, which utilise patented ideas and technologies.
In June, the Finnish phone manufacturer finally settled all of its patent disputes with Apple, resulting in an agreement that saw the withdrawal of all complaints filed by both companies to the US International Trade Commission. The agreement entailed a one-time payment by Apple, as well as the continued payment of royalties, signifying the strength of Nokia’s own intellectual property.
The move comes at a time when technology giants are moving to secure patent rights through their own research and development or by high profile acquisitions. Google recently acquired Motorola Mobility for $12.5 billion, gaining around 12,500 patents in the process, with Apple leading a consortium including RIM and Microsoft to pay $4.5 billion for the wireless patents held by Nortel Networks.
Mosaid has previously issued patent infringement lawsuits against Dell, HTC, Sony Ericsson, Research In Motion, Huawei Technologies, Wistron, ASUSteK, Asus Computer, Lexmark, Canon, Canon and Intel – to name a few.
Whether this means we are about to see Nokia actively asserting its intellectual property rights against its rivals remains to be seen. With Apple having already filed complaints against HTC and Samsung in courts worldwide, the company may be proactive in its actions, filing complaints against its rivals to add to its revenue streams.
Get the TNW newsletter
Get the most important tech news in your inbox each week.