An arbitration ruling was given last week, putting an end to the dispute between Nokia and LG Electronics that began in 2015. Following the ruling by an arbitration court, Nokia will receive compensation revenue from LG Electronics for using its smartphone patents but no exact figures have yet been disclosed.
The International Court of Arbitration of the International Chamber of Commerce made the binding ruling in the patent dispute between Nokia and LG. The dispute is linked to a smartphone patent license granted by Nokia to LG. The two companies had previously agreed that the decision from the court would settle the royalty payment obligations from LG to Nokia, the latter explained.
Maria Varsellona, Nokia’s Chief Legal Officer states of the ruling:
“We believe that this award confirms the quality of Nokia’s patent portfolio. We continue to see a potential for additional licensing opportunities”.
Reports state Nokia’s patent division received sales of $925 million during the first half of the year – representing 6% of group total revenue. The nature of licensing payments, however, is highly profitable; the additional revenue is likely to be a welcome injection.
The Finnish company’s phone business was sold to Microsoft in 2014, though Nokia has kept its patent catalog which includes the areas of; innovation in smartphone hardware reduction, battery life conservation, radio reception increases and several other aspects.