Xiaomi and Nokia sign a patent cross-licensing agreement on cellular network standards

According to reports, Nokia and Xiaomi announced on Wednesday that the two sides have signed a patent licensing agreement. The two companies did not disclose the financial details of the agreement, but said the agreement includes cross-licensing of the cellular network standard patents of the two companies; in addition, Nokia will provide network infrastructure equipment for Xiaomi.

In fact, as early as July this year, Xiaomi announced a business cooperation agreement with Nokia and a multi-year patent license agreement, including cross-licensing the standard essential patents for mobile networks. The transaction also includes Xiaomi's acquisition of some of Nokia's patent assets.

It is reported that under the business cooperation agreement signed on the same day, Nokia will provide high-performance and low-power network infrastructure equipment required by Internet service providers and data centers. Nokia and Xiaomi will collaborate to develop optical transport technology for inter-data center transmission, IP routing technology based on Nokia's latest FP4 network processor, and data center network solutions. In addition, the two sides will explore the possibility of cooperation in IOT, VR, AR and AI.

In fact, Nokia has previously signed a patent licensing agreement with Apple and Samsung Electronics, but the agreement with Xiaomi is the first time Nokia has reached a licensing agreement with Chinese manufacturers. OP EquiTIes analysts said, "Financially, I don't think the agreement with Xiaomi is very important to Nokia. But this is a good beginning, which is conducive to negotiating with other Chinese mobile phone manufacturers."

Earlier at the 2017 Shanghai International Business Conference, Xiaomi, the founder of Xiaomi Technology, said that Xiaomi had obtained 2,895 patents throughout the year, and Xiaomi has won more than 4,000 invention patents. Half of them are international patents.

Nokia has also accumulated a large number of patents in the era of ruling the mobile phone market. The technologies covered include various aspects such as reducing the demand for hardware components of mobile phones, saving power, enhancing radio reception, and other functions. At present, patent royalties only account for a small portion of Nokia's revenue, and more than 90% of the company's revenue comes from telecommunications network equipment.

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