Nokia settled a long-running patent dispute with Samsung, stating an arbitration court decision over the issue will boost its 2015 revenue generated from intellectual property assets.
The decision from the International Chamber of Commerce settled the amount of additional compensation Nokia will be paid, covering a period beginning in 2014 and running to the end of 2018.
In a statement, Nokia said that including the settlement, its Nokia Technologies unit expects to report net sales of approximately €400 million in Q4 2015, and approximately €1.02 billion for the whole of 2015. It added that the numbers include catch up revenue, as “the award exceeded revenue estimates already recognised” from the past two years.
Following the award, as of the end of Q4 2015, Nokia Technologies had an annualised net sales run rate of approximately €800 million.
Nokia added it expects to receive at least €1.3 billion in cash from 2016 to 2018, related to its settled and ongoing arbitrations in Nokia Technologies, including the Samsung award.
Nokia, once a leader in the smartphone market, holds a strong portfolio patents within its Nokia Technologies, Nokia Networks and recently acquired Alcatel-Lucent portfolios.
“The use of independent arbitration to resolve differences in patent cases is a recognised best practise and we welcome the additional compensation payable to Nokia under the extended agreement,” said Ramzi Haidamus, president of Nokia Technologies.
“We look forward to further collaboration with Samsung and others in additional licensing opportunities in the mobile communications market and beyond.”
Nokia is set to report its Q4 2015 and full year earnings on 11 February.