Apple Extends Patent License Agreement With Nokia For 5G And Other Technologies

Apple Inc. has extended its patent license agreement with Nokia. The agreement covers network infrastructure and 5G technology developed by Nokia. The long-term patent license agreement replaces the current agreement between the two companies which is set to expire at the end of this year.

Finnish company Nokia and American consumer electronics giants Apple Inc. have signed a new long-term patent license agreement, which essentially replaces the current deal between the two companies.

Apple Secures Access To Nokia's 5G Technology Innovations

Network infrastructure and 5G technology provider Nokia signed a new agreement with Apple granting the latter access to its technologies, especially in the 5G telecommunications segment. Speaking about the agreement, Nokia Technologies President Jenni Lukander said:

"The agreement reflects the strength of Nokia's patent portfolio, decades-long investments in R&D, and contributions to cellular standards and other technologies."

The terms of the agreement remain confidential between the companies. However, it enables Apple to use the Finnish company's technology in its products and covers Nokia's inventions in 5G and other technologies.

The previous license agreement between Apple and Nokia was announced in May 2017. In other words, the two companies sign an agreement that stays valid for five years.

What Will Apple And Nokia Gain By Signing The Patient License Agreement?

Finland-based Nokia is one of the world's main suppliers of 5G. Several companies have long been actively developing the latest generation of telecommunications and wireless broadband technology.

Nokia competes with Sweden's Ericsson, China's Huawei, and South Korea's Samsung. However, Nokia is one of the oldest and the most deeply entrenched company in the field. Additionally, it has had decades of experience with consumer electronics and modern-day mobile telephony.

Nokia's patent portfolio is built on more than EUR 140 billion (approx. ₹12,55,260 crore) invested in Research & Development. The company has around 20,000 patents, including over 5,500 declared essential to 5G.

With the license agreement, Apple Inc. would continue to have access to the aforementioned huge portfolio. With a Finnish company by its side, Apple Inc. can confidently incorporate reliable 5G technologies in its upcoming iPhone, and other devices.

Nokia should recognize revenue related to the agreement starting January 2024. In other words, the company could reveal the financial benefits of the agreement in the second quarter of next year.