Nokia phones are fading, but they still touch the nerves of handset makers.
Nokia's chief executive, Rajeevsuri, confirmed at an analyst meeting that Nokia would not manufacture handsets directly in the future, although he said Nokia was considering increasing patent licensing fees.
A number of mobile phone companies expressed concern about this, a Samsung insider to the "First financial daily" reporter said that Nokia no longer production of mobile phones, other companies will have difficulty in restricting their patent fee increase.
But given the impact on industry and government attitudes and the likely rebound, Nokia has not yet decided.
On April 25 this year, the company completed its acquisition of Nokia's equipment division, but Nokia did not sell its vast patent ownership to Microsoft, but only authorized Microsoft to use it.
At present, Nokia has at least 10,000 patents. Nokia is the traditional mobile phone overlord, is one of the main owners of 2G patents, 3G period, Nokia has a large number of WCDMA patents, 4G period, active participation in the LTE research and development of Nokia has a considerable number of LTE patents.
"Mobile phones are all in one hand, and 4G phones are using 2G technology," he said. Yanhui, secretary general of the Mobile China Alliance, told reporters that the global handset makers have been hard to circumvent the Nokia patent.
Nokia has remained a strong pie for the protection of patents. In 2011, Nokia sued Apple for a lump-sum royalties and signed a patent cross-licensing agreement that ended years of disputes. Samsung also renewed a five-year patent-use agreement with Nokia in 2013 to secure access to some patent portfolios.
When Nokia makes handsets, other companies can cross authorize with Nokia without paying high royalties. Nokia became a licensed company with a large number of core patents and a relatively single handset after its shutdown. "Many companies are worried that Nokia will raise royalties," the Samsung said, as it no longer needed to use other handset makers ' patents. ”
After the sale of equipment departments, patent licensing has been and telecommunications business, map business has become one of the three pillars of Nokia business. Rajeevsuri said Nokia had shrugged off its long-standing long-term decline, ushering in its first year-on-year growth since 2011.
Nearly 40 companies, including Apple, Samsung, HTC, Microsoft, BlackBerry, LG, Sony, Motorola and Huawei, are required to pay a patent license fee to Nokia, according to Valuewalk, a research institute.
Some researchers estimate that Nokia can get at least 500 million euros per year of patent revenue, Apple, Samsung, Microsoft is its main contributor, by 2018, Nokia's annual patent fee will rise to 600 million euros.
The first financial daily reporter learned that most Chinese mobile phone companies have not signed a patent licensing agreement with Nokia, and Nokia is trying to break the situation.
Rajeevsuri has made it clear that Nokia will launch negotiations in the future with small and medium-sized equipment manufacturers and non-handset makers, such as set-top boxes and digital camera manufacturers.
"Over the past year, it has been felt that Nokia has changed little, and in fact it is in the midst of a new plan to redesign the patent business, including the transfer of some patents to third-party companies, which charge or Sue separately, and several Chinese mobile phone companies have received a letter from Nokia." "Yanhui said.
In Yanhui's view, the game between Nokia and Chinese handset makers is largely dependent on the outcome of the infringement case by Nokia v. Shanghai Chinese Companies.
December 2010, Nokia sued the company for 8 patent infringement, including "mobile communication device with camera", "Communication Terminal", "Select data transfer Method", "User equipment, cellular wireless network and its location Update method", "Select data transmission Method" and other basic technology patents. After a lengthy trial, the case in the first trial in July, the verdict, Nokia lost, "the choice of data transmission method" and other patents were declared invalid.
Nokia has appealed and expects the case to end next year.