Details of the agreement are relatively thin for the moment, though piggy-backing on one of the technology industry’s most successful businesses can hardly be a bad thing.
Both parties are staying pretty tight lipped about the agreement so far, but the patent license agreement is expected to start paying off in the fourth quarter. The team has also quoted ‘non-recurring catch-up revenue’, with additional revenues expected to be realized as the years roll on through.
“Huawei is one of China’s largest companies and is among the world’s leading smartphone manufacturers and we are delighted to welcome them to our family of patent licensees,” said Maria Varsellona, Chief Legal Officer at Nokia.
Nokia’s patenting and brand licensing business has proved to be a handy earner over the last couple of years. During the third quarter of 2017, patenting and brand licensing earned the Finn’s €474 million, representing 8% of total revenues. Of course one of the more notable agreements has been with HMD Global to revive retro Nokia devices, stealing the show at MWC this year, and empowering hipsters all over the world.
While there are few details floating around, Huawei has been trying to crack the developed markets for its devices. The Chinese brands have been very successful in the developing markets, though areas like Europe has been more of a struggle due to stricter IP laws. Such an agreement could prove to be a useful addition for Huawei in its quest for global domination.
Over in Finland, Nokia has struggled to live with Huawei’s healthy growth in recent years, though the last 12 months has been much more encouraging, with the Alcatel Lucent acquisition making positive impacts. This agreement is another sign Nokia is heading back to the promised lands, finishing 2017 on a high note to end a few miserable years.