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

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?