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Nokia and HP reach patent license deal on video tech

Published 10/29/2024, 06:22 PM
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ESPOO, Finland - Nokia has entered into a multi-year patent license agreement with HP (NYSE:HPQ), the Finnish technology company announced on Tuesday. The deal, which includes royalty payments from HP to Nokia, covers the use of Nokia's video technologies in HP's devices. This agreement also puts an end to all patent litigation between the two companies across all jurisdictions.

While the specific terms of the agreement remain confidential, the resolution marks the end of legal disputes related to these patents. Nokia's Chief Licensing Officer New Segments, Arvin Patel, expressed satisfaction with the agreement, stating that it acknowledges Nokia's contributions to video and multimedia technologies.

Nokia has been a significant player in the development of multimedia technologies, with a portfolio that includes innovations in video compression, content delivery, and recommendation, as well as relevant hardware aspects. Over the past quarter-century, Nokia has generated approximately 5,000 inventions that have propelled multimedia products and services.

The company's commitment to research and development in multimedia is evidenced by its substantial investment in R&D, which totals around €150 billion since the year 2000. In 2023 alone, Nokia invested over €4 billion. These investments support Nokia's broader role in the tech industry, where it pioneers advanced networks and values intellectual property and long-term research.

Nokia's ongoing work in technology innovation is supported by Nokia Bell Labs, an award-winning industrial research arm that has contributed to the company's reputation as a leader in B2B technology innovation.

The partnership between Nokia and HP illustrates the importance of intellectual property agreements in the tech sector, where companies often rely on licensing arrangements to integrate cutting-edge technologies into their products.

This agreement is based on a press release statement from Nokia, and it signifies a collaborative step forward for both companies in the realm of video technology.

In other recent news, Nokia Oyj (HE:NOKIA) has joined forces with Axiom Space Inc. to incorporate 4G/LTE technology into spacesuits for NASA's forthcoming Artemis III moon mission. This partnership aims to ensure high-definition video communications and data transmission between astronauts and Earth, a significant advancement in lunar exploration. The Axiom Extravehicular Mobility Unit will be fitted with Nokia's high-speed cellular network features, facilitating real-time video capture and communication among the crew on the Moon's surface.

Nokia plans to launch the first cellular network on the moon as part of the Intuitive Machines IM-2 mission, with equipment delivery to the launch site scheduled for 2024. The company's Lunar Surface Communications System, developed by Nokia Bell Labs, will be modified for use in the AxEMU spacesuits. This collaboration between Nokia and Axiom Space is a critical step toward American leadership in space exploration and contributes to the broader objective of deepening our understanding of the Moon and beyond.

These are recent developments that indicate a larger joint effort by both companies to develop technologies for space exploration, with Nokia known for its networking solutions and Axiom Space recognized for its human spaceflight services and space infrastructure development.

InvestingPro Insights

Nokia's recent patent licensing agreement with HP aligns well with its strong market position and financial health. According to InvestingPro data, Nokia boasts a market capitalization of $26.68 billion, underlining its significant presence in the tech sector. The company's solid financial footing is further evidenced by an InvestingPro Tip, which notes that Nokia "holds more cash than debt on its balance sheet." This financial stability provides Nokia with the flexibility to continue investing in research and development, crucial for maintaining its innovative edge in areas like video and multimedia technologies.

Despite a revenue decline of 14.67% in the last twelve months, Nokia maintains a healthy gross profit margin of 44.41%. This suggests that while the company faces some headwinds, it still effectively monetizes its technological innovations and intellectual property. An InvestingPro Tip highlights that Nokia "has raised its dividend for 3 consecutive years," indicating a commitment to shareholder returns even as it invests heavily in R&D.

The agreement with HP could potentially contribute to improving Nokia's financial metrics. With a P/E ratio (adjusted) of 16.87, the company appears reasonably valued, especially considering its strong position in the Communications Equipment industry. Investors seeking more insights can find 13 additional InvestingPro Tips for Nokia, offering a comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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