Chinese smartphone maker Oppo and Finnish consumer electronics giant Nokia have announced a global patent licensing agreement, ending a years-long legal battle over mobile phone royalties that spans continents.
The two companies had been involved in multiple patent lawsuits in 12 countries since 2021 after Oppo could not agree on a price for using Nokia’s 5G patent portfolio in the Chinese company’s smartphones.
On Wednesday, Oppo, the world’s fourth-largest smartphone brand according to data from research firm IDC, signed a global patent cross-licensing agreement with Nokia covering standard-essential patents (SEPs) in 5G and other cellular technologies. announced.
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Rise of Chinese smartphones
Rise of Chinese smartphones
SEP is essential for ensuring that your product complies with industry standards.
“Following the agreement, the parties will resolve all pending litigation in all jurisdictions,” Oppo said in a statement.
Nokia said in a separate statement that Oppo will pay royalties according to agreed rates and settle payments owed to Nokia. According to a statement from both companies, the license fees and other specific terms of the agreement were not disclosed as “confidential matters based on mutual agreement.”
Oppo did not comment on the impact of the transaction on its German operations.
Chinese companies are still filing lawsuits in Germany, and in late December a Munich court ruled that Oppo infringed the patents of U.S. wireless and mobile technology company InterDigital and granted an injunction against the Chinese companies. The judgment was in favor.
The deal between Nokia and Oppo comes after a Chinese court upheld Oppo’s petition to lower royalty rates on Nokia’s SEPs for 2G to 5G technology.
Oppo is under pressure to resolve patent disputes and increase global sales amid intense competition. The Dongguan-based company’s smartphone shipments fell 9.9% in 2023 due to macroeconomic headwinds, according to IDC data.
Earlier this month, Oppo’s domestic rival Honor, a U.S.-licensed Huawei spinoff, signed a patent license agreement with Nokia covering SEP for mobile phone technology, including 5G.
