Well, this latest news comes as a big shocker to everyone following the Nokia and to us too. We already know that Nokia is fighting very hard to alive in handset market. As a part of their new strategy Nokia was seen shutting down many of its plants and offices worldwide and they also fully sold of the Qt division to Digia today. As a pioneer in mobiles and related technology Nokia had wide a portfolio of patents. And Nokia has now turned to their patents to raise some cash. Nokia is selling their over 500 patents to Vringo. These patents include those related to 2G, 2.5G, 3G and 4G and related technologies and include GSM, WCDMA, T63, T64, DECT, IETF, LTE, SAE, and OMA. Virngo will have to pay $22 million to Nokia on and 14th September 2012. While the every single company in the industry is trying hard to acquire as many patents as they can Nokia is doing the exactly opposite. All we can say is Desperate times call for desperate measures.
Here’s the excerpt from official press release,
Patent Purchase Agreement
On August 9, 2012, Vringo, Inc. (the “Company”) entered into a Patent Purchase Agreement (the “Patent Purchase Agreement”) with Nokia Corporation (“Nokia”) pursuant to which Nokia agreed to sell to the Company a portfolio consisting of over 500 patents and patent applications worldwide, including 109 issued United States patents. The Company agreed to compensate Nokia with a cash payment and certain ongoing rights in revenues generated from the patent portfolio.
The portfolio encompasses a broad range of technologies relating to cellular infrastructure, including communication management, data and signal transmission, mobility management, radio resources management and services.
Thirty-one of the 124 patent families acquired have been declared essential by Nokia to wireless communications standards. Standards represented in the portfolio are commonly known as 2G, 2.5G, 3G and 4G and related technologies and include GSM, WCDMA, T63, T64, DECT, IETF, LTE, SAE, and OMA.
The purchase price for the portfolio is $22 million, plus to the extent that the gross revenue (as defined in the Patent Purchase Agreement) generated by such portfolio exceeds $22 million, a royalty of 35% of such excess. The $22 million payment shall be paid to Nokia on or before September 14, 2012. The Patent Purchase Agreement provides that Nokia and its affiliates will retain a non-exclusive, worldwide and fully paid-up license (without the right to grant sublicenses) to the portfolio for the sole purpose of supplying (as defined in the Patent Purchase Agreement) Nokia’s products. The Patent Purchase Agreement also provides that if the Company brings a proceeding against Nokia or its affiliates within seven years, Nokia shall have the right to re-acquire the patent portfolio for a nominal amount.