Nokia signed a patent licensing deal with Huawei earlier today. For those who are unaware, Huawei is the second biggest smartphone company in China, with Xiaomi taking the first place. Not much has been shared about this deal in the official press release, but more can be revealed in the quarterly financial reports.
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Here is the official press release from Nokia:
Nokia and Huawei sign patent license agreement
Espoo, Finland – Nokia today announced that it has signed a multi-year patent license agreement with Huawei.
“Huawei is one of China’s largest companies and is among the world’s leading smartphone manufacturers and we are delighted to welcome them to our family of patent licensees,” said Maria Varsellona, chief legal officer at Nokia.
While details of the license agreement remain confidential, Nokia will follow its existing practices for disclosing patent licensing revenue in its quarterly financial reports and expects that revenue for the agreement will begin to be recognized in the fourth quarter of 2017, including an element of non-recurring catch-up revenue, with additional revenues expected during the term of the agreement.