Nokia to Return to Cellphones Via Licensing Pact

By Matthias Verbergt

Nokia Corp., the Finnish company that once dominated the cellphone industry, is planning a comeback.

The company, which has refashioned itself into a maker of wireless and Internet network equipment, won't be making cellphones directly.

Rather, Nokia said Wednesday that it would grant brand, patent and design rights to a newly created company based in Finland, HMD Global Oy, through a 10-year exclusive agreement.

The Finnish company said HMD has yet to complete a transaction with Microsoft Corp. over certain branding and design rights the U.S. company owns since buying Nokia's cellphone business two years ago.

Wednesday's announcement marks Nokia's second step toward a return to the consumer products arena in weeks. Last month, the company said it planned to buy Withings SA, a French startup that was among the first companies to make Internet-connected devices that track users' health.

Write to Matthias Verbergt at Matthias.Verbergt@wsj.com

(END) Dow Jones Newswires

May 18, 2016 06:38 ET (10:38 GMT)

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