Patent Agreement Shows Nokia (NOK) Still Has it Where it Counts (RIMM) (AAPL)
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Nokia (NYSE: NOK) appears to be flexing a little muscle as it looks to bolster income with Lumia sales still gaining traction.
Late Thursday, Nokia and Research In Motion (Nasdaq: RIMM) announced a deal which finds RIM entering into a licensing agreement with the Espoo, Finland-based celllphone maker. Under the accord, RIM will pay licensing fees to Nokia, and patent litigation in the U.S., the U.K., and Canada.
In November, Nokia was said to increase pressure on RIM which would have resulted in RIM being banned from selling BlackBerry devices that connect via Wifi networks in the three markets.
Nokia also filed suit in Germany and the U.S. last May, though no word on whether the two sides will reach an agreement over that case has been made.
Today's agreement comes following another big win for Nokia against Apple (Nasdaq: AAPL). The two agreed to a settlement in June 2011 under which Apple would make a lump-sum payment to Nokia as well as ongoing royalties.
One of Nokia's strongest assets is its robust patent portfolio; it spent $40 billion over the last 10 years on R&D, about four times as much as Apple. Despite not being able to translate that into the most popular devices as of recent, it's almost like insurance against rough market conditions.
Shares are lower in early trading Friday.
Late Thursday, Nokia and Research In Motion (Nasdaq: RIMM) announced a deal which finds RIM entering into a licensing agreement with the Espoo, Finland-based celllphone maker. Under the accord, RIM will pay licensing fees to Nokia, and patent litigation in the U.S., the U.K., and Canada.
In November, Nokia was said to increase pressure on RIM which would have resulted in RIM being banned from selling BlackBerry devices that connect via Wifi networks in the three markets.
Nokia also filed suit in Germany and the U.S. last May, though no word on whether the two sides will reach an agreement over that case has been made.
Today's agreement comes following another big win for Nokia against Apple (Nasdaq: AAPL). The two agreed to a settlement in June 2011 under which Apple would make a lump-sum payment to Nokia as well as ongoing royalties.
One of Nokia's strongest assets is its robust patent portfolio; it spent $40 billion over the last 10 years on R&D, about four times as much as Apple. Despite not being able to translate that into the most popular devices as of recent, it's almost like insurance against rough market conditions.
Shares are lower in early trading Friday.
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