Original article source: http://wp.me/p2PCVq-NM
Nokia Microsoft Deal & Smartphone Patents – Summary & Differences with Google Motorola Deal
Brief facts and analysis:
Amount paid by Microsoft to Nokia: $ 7.2 Billion / Є 5.44 Billion
- Nokia’s Devices & Services business
- Mobile Phones and Smart Devices business units
- Industry-leading design team
- Operations: Nokia Devices & Services Production Facilities
- Devices & Services-related sales and marketing activities
- Related support functions
For detailed infographic, click here.
Timing of the move: quite sensible considering BlackBerry‘s uncertain future, implies Microsoft’s long term commitment towards Smartphones
Patent-related Aspects: Nokia has only licensed, not sold its patent portfolio
Contrasting Differences with Google – Motorola Deal
- Google acquired Motorola mainly for its patent portfolio
- Google overpaid for Motorola’s
- At present, only one enforceable patent injunction against Apple in Germany
- No injunction against Microsoft
Microsoft to pay Є 1.65 billion to license Nokia’s patents:
- Boost for Nokia’s Patent Monetization Strategy
- Nokia to grant 10-year non-exclusive license to Microsoft
- Microsoft to grant reciprocal rights to Nokia for using Microsoft patents in its location and mapping software
- Nokia to grant an option to extend this mutual patent agreement in continuity to Microsoft
- Nokia’s existing long-term patent licensing agreement with Qualcomm and other licensing agreements also licensed to Microsoft
- Nokia is also licensing existing arrangements with IBM, Motorola Mobility and Motorola Solutions to Microsoft
- Design Patents, which are generally not licensed to third parties, have been acquired by Microsoft, 8500 in total
Regulatory Issues: Deal is subject Antitrust Approval, and termination fee of USD 750 million will be paid by Microsoft to Nokia in case transaction fails, which in case of Google – Motorola deal was USD 2.5 billion, which was astronomically high probably concerned over antitrust approval
Microsoft has acquired Lumia & Asha brands
Microsoft to use Nokia brand on smartphones for 10 years
Nokia’s patent portfolio – one of the strongest in tech sectors
Overall, Nokia’s patent portfolio covers 30,000 utility patents + applications
Conclusion: Microsoft will have most cost effective patent arrangements for smart devices
Nokia’s future: they possess the largest and strongest intellectual property portfolio in the industry, with ~10,000 carefully selected patent families
Nokia has already established a successful patent and technology licensing operation, which will be expand to continue to drive revenue and profit for Nokia through the new Advanced Technologies business, as conveyed by Nokia’s Chairmain Risto Siilasmaa.
Nokia will also select a new CEO since current Chief Executive Stephen Elop will follow the mobile business to Microsoft.
Impact of Nokia – Microsoft Deal on BlackBerry:
- One obvious buyer of BlackBerry’s mobile division does not exist anymore.
- Microsoft will not buy it BlackBerry – Google has quite different strategy from Apple – Samsung will be not interested at all.
- Present categories of OS – divided among Google, Apple and Microsoft, BlackBerry’s OS is entirely different.
- Impossible for any company to acquire BlackBerry as it will require abandonment of existing OS.
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