The agreement between Samsung and Nokia enables Samsung to use Nokia’s 5G tech in its products.
Finnish telecoms multinational Nokia and South Korean tech giant Samsung have signed a 5G patent license agreement following the expiry of a previous agreement between the two.
The previous agreement between the two companies expired at the end of 2022. The new cross-license patent agreement was signed today (23 January).
Samsung and Nokia are keeping the terms of the agreement mostly under wraps. However, it is known that Samsung will make royalty payments to Nokia over a period of several years. The agreement covers Nokia’s 5G tech and it means Samsung will be able to benefit from Nokia’s 5G innovation.
Jenni Lukander, president of Nokia Technologies, commented on the deal between the two parties. “Samsung is a leader in the smartphone industry, and we are delighted to have reached an amicable agreement with them. The agreement gives both companies the freedom to innovate, and reflects the strength of Nokia’s patent portfolio, decades-long investments in R&D and contributions to cellular standards and other technologies.”
Over the past number of years, Nokia has pivoted its focus away from making mobile phones towards investing in 5G and R&D.
In March 2021, the company announced it was cutting up to 10,000 jobs worldwide so it could restructure its operation to focus more on R&D.
At the time of the layoffs, the company said it wanted to lower its cost base by approximately €600m by the end of 2023.
In 2020, Nokia announced it had made a deal with telecoms company BT to assist the rollout of its 5G network in the UK.
Recently, Samsung’s Q4 earnings report for 2022 revealed that its profits plummeted by 69pc. This was far short of what analysts were expecting.
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