Nokia smiles: harvesting China's three major mobile phone manufacturers, 5G patent fees have increased steadily!
As we all know, the so-called 5G, 4G, 3G, etc. These telecommunications license fees are opaque bills.
Companies that set industry standard fees do so based on their own business logic, regardless of the number or value of patents.
This is why companies such as Qualcomm, Nokia, and Ericsson require phone manufacturers to pay license fees and are often involved in various legal disputes, as no one can be sure.
For example, OPPO and Vivo prefer not to sell phones in Europe and other regions rather than pay a license fee to Nokia, which has led to a lawsuit between them.
However, not paying the license fee is certainly not a long-term solution, and it is really a matter of drawing the line between the two parties and finally reaching an agreement. This was not the case with the OPPO and vivo litigation battle, which was eventually resolved.
Nokia announced some time ago that it has signed a multi-year patent cross-licensing agreement with Chinese smartphone manufacturer vivo.
In January of this year, before Vivo, Oppo announced a global patent cross-licensing agreement with Nokia, and Honor also signed a patent license agreement with Nokia in January.
At the beginning of 2024, Nokia entered into patent cross-licensing agreements with China's three major mobile phone manufacturers, and these revenues are stable for Nokia.
So, what is the value of this deal? The specifics of the transaction are confidential and we have no way of knowing, but there is some information about Nokia that can give us some information.
For the full year 2023, Nokia's Technology Business Group's patent licensing division will achieve an operating profit of 73.4 billion euros (about 5.7 billion yuan), or 43.3 percent of total operating profit4%。
At the same time, Nokia said that the company is confident that it will achieve sales of 1.4-1.5 billion euros in the first half of 2024 compared to the first half of the year.
And this part is basically the 5G license fee that Honor, OPPO, vivo and other mobile phone manufacturers have to contribute, so it is estimated that after a year, Nokia may have 2.8-3 billion euros in revenue from the fixed license fee, which is equivalent to more than 20 billion yuan.
It can be seen that it is not to give domestic mobile phone manufacturers a high market share, but to pay patent fees to Qualcomm, Nokia, Ericsson, etc., because a year is indeed a lot, we have to work hard, learn more core technologies, apply for more patents, and pry others to make money to prevent them from making more money, otherwise the profits are used to pay various patent fees.