Nokia expects to gain additional revenue, starting with the current quarter, after a ruling was reached on smartphone patent payments from South Korean company LG Electronics.
The decision, which was reached by the international court of arbitration of the international chamber of commerce, comes after a two year process.
While the details of the arbitration award and the license agreement between the companies remains confidential, Nokia said in a statement it will follow existing practices for disclosing patent licensing revenue in its quarterly announcements “and expects revenue for the agreement will be recognised” in the next quarterly results announcement.
This will include “an element of non-recurring catch up revenue, with additional revenues during the term of the agreement.”
In the statement, Maria Varsellona, chief legal officer at Nokia, said the award “confirms the quality of Nokia’s patent portfolio”.
“We continue to see potential for additional licensing opportunities in the mobile communications market and beyond,” she added.
Along with LG, Nokia has existing patent agreements in place with smartphone market leaders Samsung and Apple, as well as China’s Samsung.
In H1 2017, the company’s patent unit reached revenue of €616 million, 6 per cent of total revenue. The unit is, however, seen as vital for the company, with licensing payments offsetting a slump in telecoms networks sales.
According to Reuters, the deal with LG will be much smaller than its agreement with Apple, which is estimated to bring in €250 million.