Nokia, Samsung extend patent license agreement for 5 years

A patent license agreement between Nokia and Samsung has been extended for five years, announced Nokia. The duo have entered into binding arbitration to settle the amount of additional compensation. The agreement would have expired by the end of this year.

"Samsung will pay additional compensation to Nokia for the period commencing from January 1, 2014 onwards, and the amount of such compensation would be finally settled in a binding arbitration which is expected to be concluded during 2015." said Nokia in a statement.

"This extension and agreement to arbitrate represent a hallmark of constructive resolution of licensing disputes, and are expected to save significant transaction costs for both parties", said Paul Melin, Chief Intellectual Property Officer of Nokia.

Nokia will retain its patent portfolio following the proposed transaction to sell substantially all of its Devices & Services business to Microsoft and sees further opportunity to create value by investing in innovation, and by actively managing its patent portfolio and licensing activities.