LG Electronics Agrees To Take Smartphone Patent License From Nokia .
Finnish network equipment maker Nokia Corp announced today that South Korea' LG Electronics Ltd. (LGEPF.OB, LGEAF.OB) has agreed to take a royalty-bearing smartphone patent license from Nokia Technologies.
LG is the latest of more than 60 licensees for Nokia's 2G, 3G and 4G mobile communication technologies and the first major smartphone manufacturer to join the licensing program since Nokia divested its Devices & Services business to Microsoft in 2014.
The company said the detailed royalty payment obligations will be subject to commercial arbitration, expected to conclude within a 1-2 year timeframe. Other terms of the agreement remain confidential between the two companies.
Ramzi Haidamus, President of Nokia Technologies, said, "We are pleased to welcome LG Electronics to our licensing program. We've worked constructively with LG Electronics and agreed a mutually beneficial approach, including the use of independent arbitration to resolve any differences. This agreement sets the scene for further collaboration between our companies in future."
In Helsinki, Nokia shares were trading at 6.11 euros, down 1.69 percent.
LG shares lost 2.71 percent today to settle at 50,300 won.