Today’s tech news: Nokia signs patent licence agreement with Oppo

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Nokia announced that it signed a multi-year patent licensing deal with the Smartphone manufacturer Oppo.

Terms of the agreement between Nokia and Oppo are intended to kept secret. Though Nokia said that Oppo will make payments to it for the multi-year licence period. It comes after it entered into a patent deal with another Chinese electronics company, in 2017. Under that business cooperation and patent agreement. Xiaomi acquired patents from its and the Finnish company agreed to help Xiaomi advance its technology.

Maria Varsellona, Nokia CLO and President of Nokia Technologies. Said that “Oppo one of the leaders in the Smartphone industry and Nokia pleased to welcome them as a licensee. This agreement further validates Nokia’s global licensing program.

The press release doesn’t mention the amount that OPPO will pay to Nokia as payment royalty during the said multi-year licensing period. Though, it will be a substantial amount if we consider the already existing licensing agreements with likes of Samsung, Huawei, LG and many other.

This patent licence agreement will further improve Nokia Technologies financial results. And positively to improve the balance sheet of the whole group, because money from patents is mostly profit. But the major problem for the R&D expense on the group level that is responsible for patenting technologies. And also Nokia invested a lot of money in R&D in the last two decades, and after selling the D&S business to Microsoft. And then they have engage in a more aggressive licensing policy to maximally return their investment.