Nokia and Xiaomi signed an agreement on mutual licensing

The Finnish company Nokia, which manufactures telecommunications equipment, and Chinese smartphone maker Xiaomi Technology has signed a licensing agreement.

The financial side of the agreement are not disclosed. It is known that the parties gave each other the right to use patents related to cellular standards.

In addition, Nokia will supply Xiaomi network infrastructure equipment.

Nokia has similar agreements with other major smartphone manufacturers, including Apple and Samsung Electronics, but Xiaomi is the first Chinese company that licensed the development of Nokia. Analyst OP Equities, who leads opinion source, he sees a special importance of the agreement as it provides a good starting point in negotiations with other Chinese companies.

Nokia has an impressive collection of patents in the field of cellular communication, the accumulated back in the days when the Finnish manufacturer has dominated the smartphone market.

However, licensing patents for Nokia is not a significant source of income, 90% of which are sales of telecommunications equipment. However, this is a very attractive activity from the point of view of profitability, especially in the telecommunications equipment market has recently seen a slowdown.

Source: Reuters

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