Nokia sells 450 wireless and video patents to Sisvel

The patents are used in GSM, 3G and LTE devices, and for video encoding optimization technologies

Nokia has sold 450 wireless and video patents and patent applications to Sisvel International, an Italian patent licensing company.

The patents cover technologies used in GSM, 3G and LTE mobile devices, as well as in video encoding optimization systems, according to Sisvel.

Nokia will retain a license to use the intellectual property covered by the deal, which involves around one-sixtieth of its portfolio of pending and granted patents.

About 350 of the patents and patent applications have been declared by Nokia to be essential to standards for GSM, 3G and LTE (Long Term Evolution) wireless systems, Sisvel said. That would mean that not only Nokia, but also other mobile phone manufacturers, are likely to use them.

Sisvel will honor existing licensing deals for the patents between Nokia and other companies, said Sisvel, which is building a "patent pool" for LTE wireless systems. The company already operates a patent pool for the DVB-T digital TV broadcast system, and manages licensing for the patents on MP3 and MPEG Audio compression systems.

Nokia's patent portfolio still includes more than 30,000 individual patents and patent applications, it said. The strength of Nokia's portfolio was shown when it last year settled a legal battle with Apple. The settlement included a lump sum and ongoing royalty payments from Apple to Nokia.

Patents have become a weapon wielded by wireless market leaders including Apple and Samsung, and also a financial lifeline for struggling companies. Kodak, for example, is hoping it can stay afloat by selling off its patent portfolio, while Google is acquiring Motorola Mobility largely to get its hands on the company's patents.

The mobile device royalties market is worth close to US$20 billion per year, according to ABI Research. For GSM and 3G handsets, the cost of licensing essential patents can range from under 4 percent of the phone's price if the vendor has a very strong patent portfolio, to well over 10 percent. The average royalty paid is between 7 percent and 8 percent, ABI said.

Selling some of its patent portfolio would in effect allow Nokia to take in several years of expected future revenue as a lump sum now.

"Nokia is going to spend a lot of money, and this is a way to raise funds," said Carolina Milanesi, research vice president in Gartner's mobile devices team.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?