After moving out of its trademark device business, Nokia has been focusing its attention upon other departments. Well, the affairs of the company received a boost lately, as The International Court of Arbitration of the International Chamber of Commerce has issued its award for the binding arbitration between Nokia and Samsung.
The decision is doubly significant considering that it follows in the wake of a Nokia-Samsung agreement according to which, the companies had decided to rely upon this arbitration as the basis of a settlement over certain issues.
The issues in fact, dealt with the amount of additional compensation that should be paid to Nokia for the an extension of its license agreement with Samsung over some of the former’s patents, beginning from the 1st of Jan, 2014. The long and short of the whole story, is that Nokia will be at the receiving end of a certain — probably, not so modest — sum from Samsung.
The company has a whole bunch of patents in its bag in form of assets that comprise of intellectual property rights in different niches, including Nokia Technologies, Nokia Networks and the Alcatel-Lucent portfolios. Not only are these patents important from a technological viewpoint, but are also significant money makers, and are deployed by various organizations around the world.
Speaking on the topic, Ramzi Haidamus, President of Nokia Technologies said,
The use of independent arbitration to resolve differences in patent cases is a recognized best practice, and we welcome the additional compensation payable to Nokia under the extended agreement, We look forward to further collaboration with Samsung and others in additional licensing opportunities in the mobile communications market and beyond.
The decision will also have a significant impact upon the company’s balance sheet. Thanks to the award, Nokia Technologies can be expected to report net sales of approximately EUR 400 million in the last quarter of 2015 along with taking its annual earnings to well over a billion euros.
Well, patent disputes are cows that Nokia’s not done milking yet. The company has various other ongoing arbitration — including some more with Samsung — and it hopes to rake in at least approximately EUR 1.3 billion of cash more, during the years 2016 – 2018 from cases associated to its settled and ongoing arbitrations in Nokia Technologies.