Nokia-Samsung Patent Settlement Near
Economy, Sci & Tech

Nokia-Samsung Patent Settlement Near

The non-mobile-producing Nokia and Samsung are expected to settle their two-year patent dispute within days, with analysts forecasting a one-time payment of hundreds of millions of euros for the Finnish company.
Nokia entered into a binding arbitration with South Korea's Samsung in 2013 to settle additional compensations for a five-year period starting from early 2014, Reuters reported.
The International Chamber of Commerce's arbitration court is due to make its ruling on the issue imminently.
Nordea Markets analyst Sami Sarkamies, one of the few analysts to give a precise estimate, said the verdict could boost Nokia's operating profit by about €700 million ($758 million) this year, forecasting the court will stipulate an annual patent fee of €300 million.
"Samsung has been paying Nokia probably €100 million per year and the rate could now come up to around €300 million (per year). The settled rate will also be paid retrospectively for the last two years," Sarkamies said.
"But they have already booked perhaps $100 million a year from Samsung to their income statement, so the EBIT impact for this year could be around €700 million."
Sarkamies has a "hold" rating on Nokia shares, which have fallen 9% since last April when it announced a €15.6 billion takeover of French network gear rival Alcatel-Lucent, due to be completed this quarter.
Investors have worried about the integration process and special terms negotiated by the French government, but the share price could get a boost if the settlement with Samsung is much bigger than analysts forecasts.
Last month, Sweden's Ericsson said a patent license deal with Apple Inc. would help lift its intellectual property rights revenue by up to 40% in 2015, sending its shares up sharply.
Nokia, which once dominated the global mobile phones market, is now focused on telecom network equipment but still holds on to a portfolio of phone patents.
It said last month that the International Chamber of Commerce had advised that the settlement with Samsung is expected by the end of January.
A Nokia spokesman declined to comment on Saturday, saying the company had nothing to add beyond the previous statement.

Short URL : http://goo.gl/DChUU5
  1. http://goo.gl/xASJL8
  • http://goo.gl/ejfEiu
  • http://goo.gl/YbV5T6
  • http://goo.gl/htv5QE
  • http://goo.gl/O6Cz6u

You can also read ...

First Vice President Es'haq Jahangiri on Monday officially...
Jahangiri officially notified the process of repatriation that obligates exporters to return 95% of their currency yields.
When President Hassan Rouhani’s administration decided to...
Exporters and even local traders say they have put everything on hold for now until the dust settles on the new normal.
The foreign exchange market recently went in a frenzy, with...
Snapp, Iran’s First Unicorn Startup?
The widely used ride-hailing application Snapp will pursue new...
Gov’t Weighing Impact of Forex Measures on Trade
The government is assessing the effect of unified exchange...
Iran Business Environment Improves
Iran’s National Business Environment Index improved slightly...
GM has sought wage concessions from its labor union as well as government funding and incentives to save its remaining three South Korean factories.
General Motors Co’s South Korean unit on Monday said it has...
Subsidized Currency for Specified Imports
The head of Management and Planning Organization has presented...