Nokia expects to recognize the revenue related to this new patent
license agreement starting in January 2024_
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ESPOO, Finland, July 4, 2023/ — _License covers Nokia’s
(www.Nokia.com [4]) fundamental inventions in 5G and other technologies;
Nokia to receive payments from Apple for a multi-year period._
Nokia announced it has signed a new patent cross-license agreement with
Apple which will replace the current license that is due to expire at
the end of 2023. The terms of the agreement remain confidential between
the parties.
Jenni Lukander, President of Nokia Technologies, said: “We are
delighted to have concluded a long-term patent license agreement with
Apple on an amicable basis. The agreement reflects the strength of
Nokia’s patent portfolio, decades-long investments in R&D, and
contributions to cellular standards and other technologies.”
Nokia expects to recognize the revenue related to this new patent
license agreement starting in January 2024. The agreement is consistent
with the assumptions Nokia has disclosed in the commentary with respect
to Nokia Technologies long-term outlook in its Financial Report for Q1
issued on April 20, 2023.
Nokia’s industry-leading patent portfolio is built on more than €140
billion invested in R&D since 2000 and is composed of around 20,000
patent families, including over 5,500 patent families declared essential
to 5G. Nokia contributes its inventions to open standards in return for
the right to license them on fair, reasonable and non-discriminatory
(FRAND) terms. Companies can license and use these technologies without
the need to make their own substantial investments in the standards,
fueling innovation and the development of new products and services for
consumers.
About Nokia:
At Nokia, we create technology that helps the world act together.
As a B2B technology innovation leader, we are pioneering networks that
sense, think and act by leveraging our work across mobile, fixed and
cloud networks. In addition, we create value with intellectual property
and long-term research, led by the award-winning Nokia Bell Labs.
Service providers, enterprises and partners worldwide trust Nokia to
deliver secure, reliable and sustainable networks today – and work
with us to create the digital services and applications of the future.
Risk factors:
_Nokia and its businesses are exposed to a number of risks and
uncertainties which include but are not limited to:_ _Competitive
intensity, which is expected to continue at a high level;_ _Our ability
to ensure competitiveness of our product roadmaps and costs through
additional R&D investments;_ _Our ability to procure certain standard
components and the costs thereof, such as semiconductors;_ _Disturbance
in the global supply chain;_ _Accelerating inflation, increased global
macro-uncertainty, major currency fluctuations and higher interest
rates;_ _Potential economic impact and disruption of global pandemics;_
_War or other geopolitical conflicts, disruptions and potential costs
thereof;_ _Other macroeconomic, industry and competitive developments;_
_Timing and value of new, renewed and existing patent licensing
agreements with smartphone vendors, automotive companies, consumer
electronics companies and other licensees;_ _Results in brand and
technology licensing; costs to protect and enforce our intellectual
property rights; on-going litigation with respect to licensing and
regulatory landscape for patent licensing;_ _The outcomes of on-going
and potential disputes and litigation;_ _Timing of completions and
acceptances of certain projects;_ _Our product and regional mix;_
_Uncertainty in forecasting income tax expenses and cash outflows, over
the long-term, as they are also subject to possible changes due to
business mix, the timing of patent licensing cash flow and changes in
tax legislation, including potential tax reforms in various countries
and OECD initiatives;_ _Our ability to utilize our US and Finnish
deferred tax assets and their recognition on our balance sheet;_ _Our
ability to meet our sustainability and other ESG targets, including our
targets relating to greenhouse gas emissions;_ _as well as the risk
factors specified under Forward-looking statements of this release, and
our 2022 annual report on Form 20-F published on 2 March 2023 under
Operating and financial review and prospects-Risk factors.
