Nokia receives decision in patent license arbitration with Samsung - positive financial impact for Nokia Technologies
February 01 2016 - 1:05AM
The International Court of Arbitration of the International Chamber
of Commerce has issued its award for the binding arbitration
between Nokia and Samsung. Nokia and Samsung had previously agreed
that this would settle the amount of additional compensation
payable to Nokia for the five year extension of their license
agreement covering certain Nokia patents for the period beginning
on January 1, 2014.
This award covers part of the Nokia Technologies patent
portfolio until the end of 2018. Nokia will continue to discuss
with Samsung its other relevant intellectual property portfolios.
Nokia has strong intellectual property assets consisting of
intellectual property rights in the separate Nokia Technologies,
Nokia Networks and Alcatel-Lucent portfolios, which include patents
essential for a variety of standardized technologies as well as
relevant implementation patents and proprietary technologies.
Including this award, Nokia expects Nokia Technologies to report
net sales of approximately EUR 400 million in the fourth quarter
2015 and approximately EUR 1 020 million for the full year 2015.
These numbers include catch up revenue because the award exceeded
revenue estimates already recognized with respect to the period
from January 1, 2014 through September 30, 2015. Consistent with
Nokia's outlook, Nokia Technologies net sales for the full year
2015 are expected to increase year on year, even after excluding
amounts related to the award. Following the award, as of the end of
the fourth quarter 2015, the annualized net sales run rate for
Nokia Technologies was approximately EUR 800 million.
Nokia expects to receive at least approximately EUR 1.3 billion
of cash during years 2016 - 2018 related to its settled and ongoing
arbitrations in Nokia Technologies, including this award. Nokia has
also earlier received some related prepayments.
"The use of independent arbitration to resolve differences in
patent cases is a recognized best practice, 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."
About Nokia Nokia is a global leader in the technologies
that connect people and things. Powered by the innovation of Bell
Labs and Nokia Technologies, the company is at the forefront of
creating and licensing the technologies that are increasingly at
the heart of our connected lives.
With state-of-the-art software, hardware and services for any
type of network, Nokia is uniquely positioned to help communication
service providers, governments, and large enterprises deliver on
the promise of 5G, the Cloud and the Internet of Things.
www.nokia.com
Media Enquiries:
Nokia Communications Tel. +358 (0) 10 448 4900 Email:
press.services@nokia.com
FORWARD-LOOKING STATEMENTS
This stock exchange release contains forward-looking statements
that reflect Nokia's current expectations and views of future
events and developments. Some of these forward-looking statements
can be identified by terms and phrases such as "look forward",
"expect", "will" and similar expressions. These forward-looking
statements include statements relating to: the impact that the
award will have on Nokia Technologies' financial results, Nokia's
intellectual property portfolios, the future performance of Nokia
Technologies and Nokia's future interactions with Samsung. These
forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from such statements.
These forward-looking statements are based on our beliefs,
assumptions and expectations of future performance, taking into
account the information currently available to us. These statements
are only predictions based upon our current expectations and views
of future events and developments. Risks and uncertainties include:
the finalization of Nokia's financial statements in compliance with
the relevant rules and regulations; Nokia's ability to maintain a
favorable relationship with Samsung; and the impact on Nokia of any
of the foregoing risks or forward-looking statements, as well as
other risk factors listed from time to time in Nokia's filings with
the U.S. Securities and Exchange Commission (the "SEC") and the
French Autorité des marchés financiers (the "AMF").
The forward-looking statements should be read in conjunction
with the other cautionary statements that are included elsewhere,
including the Risk Factors section of Nokia's most recent annual
reports on Form 20-F, reports furnished on Form 6-K, and any other
documents that Nokia or Alcatel Lucent have filed with the SEC or
the AMF. Any forward-looking statements made in this stock exchange
release are qualified in their entirety by these cautionary
statements, and there can be no assurance that the actual results
or developments anticipated by us will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on, Nokia's businesses or operations.
Except as required by law, we undertake no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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