Nokia, the Finnish telecommunications equipment giant, disclosed the commencement of a multi-year 5G patent license agreement with Chinese smartphone vendor Vivo. The agreement, effective immediately, marks the resolution of all ongoing patent disputes between the two entities across various jurisdictions. Both parties have opted to keep the specific terms of the agreement confidential.
This development stands as Nokia's latest stride in securing smartphone licensing agreements, with Vivo joining the ranks of Apple, Samsung, OPPO, Honor, and Huawei. Notably, this marks Nokia's sixth major smartphone licensing agreement within the past 13 months.
Nokia emphasised that this agreement signifies the near completion of its smartphone license renewal cycle. The company is poised to recognise net sales resulting from this collaboration starting in the first quarter of 2024.
In a broader context, Nokia anticipates robust performance from Nokia Technologies, its intellectual property licensing business, with a projected operating profit of at least 1.4 billion euros ($1.51 billion) in the year 2024.
In a recent development this month, HMD Global, the exclusive licensee overseeing Nokia-branded phones for the past eight years, announced a strategic shift by distancing itself from the iconic Nokia name in upcoming product launches. Thursday's revelation marked a pivotal moment as HMD Global officially rebranded Nokia's social media handles and website, opting for the name "Human Mobile Devices (HMD)." The familiar "Nokia.com<slash>phonesnow redirects users to HMD Global's platform.
Accompanying this rebranding effort is a teaser video released by HMD Global, solidifying the company's dedication to catering to a diverse range of customers within the market. The video emphasises the brand's commitment to delivering a unique blend of features, including enjoyment, security, speed, and affordability in their upcoming smartphone releases.
As HMD Global embarks on this independent venture, Nokia finds itself in the company of notable brands like BlackBerry and Palm, which once held significant positions in the phone market. However, similar to their counterparts, challenges posed by industry giants like Apple and Google prompted these brands to exit the market prematurely.
Highlighting its global presence, the rebranded entity pointed out its extensive reach, spanning across more than 200 countries. Since its acquisition in 2016, the brand takes pride in amassing a user base exceeding 400 million Nokia users, showcasing the lasting impact and worldwide recognition the brand has garnered over the years.
