“There have been expectations that Nokia could make more money with their patent portfolio than Ericsson”.
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Financial terms of the agreement were not disclosed.
According to an analysis done by Nordea based Sami Sarkamies, it is estimated that the verdict could add about 700 million euros (758 mln) to the operating profit of Nokia this year, forecasting the court will instruct an annual patent fee of 300 million euros.
Without disclosing the amount of the award, Nokia said that “Nokia expects to receive at least approximately Euro 1.3 billion of cash during years 2016 – 2018 related to its settled and ongoing arbitrations in Nokia Technologies, including this award”. Analysts were expecting the arbitration to deliver a much higher award, potentially yielding a run rate of upwards of 1.2 billion euros.
Ramzi Haidamus, the President of Nokia Technologies, says that the best solution for settling differences between the two companies was by independent arbitration. Nokia’s shares fell more than 10 percent after the company announced the deal with Samsung. This outcome did not support that… The technology company reported $0.09 EPS for the quarter, beating analysts’ consensus estimates of $0.08 by $0.01. Once a leading smartphone manufacturer, Nokia now depends on telecom network equipment. Nokia Networks offers network infrastructure software, hardware and services, and is divided into Mobile Broadband and Global Services.
However, sharing standards can also lead to disputes resulting in legal proceedings with businesses.
Samsung and Microsoft agreed to end a contract dispute a year ago. Reportedly, Nokia has invested more than $54 billion on R&D over the last two decades and collected 30,000 patents in the process.
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Shares in Banco Popolare (Amsterdam: PB8.AS – news) and other Italian banks also rose after the lender said it expected to agree a merger with Banca Popolare di Milano (Milan: PMI.MI – news) within a month, signalling the start of a long-awaited consolidation of Italy’s fragmented banking sector.
