Agreement for Patent License with Nokia Corporation (ADR) (NYSE:NOK) Extended for Five More years by Samsung

Samsung Electronics
Samsung Electronics

According to Nokia Corporation (ADR) (NYSE:NOK) an agreement for a patent license between Samsung and Nokia has been extended for another five years by Samsung. This agreement was supposed to end by the end of this year. Extra payment for this extension (starting in 2014) will have to be paid to Nokia by Samsung. A binding agreement shall decide the total amount to be paid in this compensation, which will be decided in 2015. The agreement clearly states entire process and its time duration.

Nokia will hold on to its industry portfolio of its patents after signing off on the deal for selling its business of Devices and Services to Microsoft. It will focus on more changes to create more value by investing in creativity and innovation and supervise Nokia’s licensing actions and patent portfolio.

Samsung has agreed to extend the contract despite uncertainties surrounding Nokia and its major business dealings. This contract has also raised a few questions regarding the actual performance and financial standing of Nokia. The company over the years has made a name for itself without any outside assistance or interference, but still it was unable to see huge business sales. Nokia’s current position demands that the company join forces with other leading market players to improve its position and retain its market share in this cut-throat competition.

Nokia’s Chief Intellectual Property Officer, Paul Melin believes that this contract expansion will save both companies from spending and investing money on transactions and reflects licensing disagreements’ productive motion.

In the last trading session, shares of Nokia Corporation (ADR) (NYSE:NOK) went down by -0.13% ($7.62).