Nokia to cap 5G phone patent licenses at €3 per device

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Image credit: Risto0 / Shutterstock.com

Nokia has outlined its licensing rate expectations for 5G mobile phones, which it says will be capped at 3 euros per device.

While Nokia no longer makes mobile devices, it does own a significant portfolio of standard essential patents (SEPs) built up through years of R&D investment. Nokia says it is committed to license its SEPs on fair, reasonable and non-discriminatory (FRAND) terms, in line with the applicable intellectual property rights policies of relevant standard setting organizations (SSOs).

Nokia also said that significant parts of emerging 5G standards will be based on its innovations, and that the company expects to have a significant position in SEPs once the standards are finalized later this year.

Nokia expects that for mobile phones which implement the 5G New Radio standard, the licensing rate for the Nokia 5G SEP portfolio will be no higher than 3 euros per device.

Beyond mobile phones, Nokia claims that there will be a broader – and unprecedented – variety of end user devices that will use Nokia innovation. For other categories of devices, Nokia will determine its licensing rates separately and will engage with relevant industry participants to define the licensing models best suited for those industries.

Ilkka Rahnasto, head of Patent Business at Nokia, said the announcement is “an important step in helping companies plan for the introduction of 5G/NR capable mobile phones, with the first commercial launches expected in 2019.”

Nokia also issued a disclaimer stating that its licensing fees are based n the company’s status quo and excludes “any major acquisitions or changes to corporate structure.”

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