Nokia Sees Patent Portfolio as Increasing Source of Revenue
Nokia Oyj (NOK1V), which today reported quarterly operating losses in its handset and network equipment businesses, will look to expand revenue from its patent portfolio, Chief Financial Officer Timo Ihamuotila said.
“We still have a very large patent pool which is unlicensed and so we see good opportunities here,” Ihamuotila said on a conference call with analysts. The company’s royalty income is on course to hit 500 million euros annually and has grown over the past year, he said.
Nokia is stepping up cost cuts and plans to dispose of “non-core” assets, which could include some patents, Ihamuotila said. The Espoo, Finland-based company, which holds patents and applications ranging from basic wireless protocols to nanotechnology, transferred about 2,000 patents and patent applications to Canada’s Mosaid Technologies Inc. for an undisclosed sum last year.
“We can look as we have done in the past at certain patent combinations which are more valuable outside Nokia than inside the company, still keeping our strength, but it is unrealistic with the current business model to say we could sell the whole IPR portfolio,” Ihamuotila said.
Nokia records patent income in its devices and services division and doesn’t break it out by quarter, he said. It receives royalties from Apple Inc. (AAPL) under an agreement reached in June 2011, and from Microsoft as part of the partnership deal on Windows phones.
To contact the reporter on this story: Diana ben-Aaron in Helsinki at email@example.com