Finnish vendor will record back-dated revenues from smartphone licensing deal in its Q3 numbers
Nokia on Monday announced that a patent dispute with rival LG is now at an end following a court decision in the matter.
The Finnish vendor declined to disclose the value of the settlement, but said it would recognise the revenue generated in its third-quarter results, which are due for publication on 26 October.
The International Court of Arbitration of the International Chamber of Commerce has made a binding ruling in the patent dispute between Nokia and LG. The dispute is linked to a smartphone patent licence granted by Nokia to LG.
The two companies had previously agreed that the decision from the court would settle the royalty payment obligations from LG to Nokia, the latter explained.
While details of the licence agreement and the settlement are confidential, Nokia said it will continue with its usual practice of disclosing patent licensing revenue in its quarterly results.
Nokia "expects that revenue for the agreement will be recognised in the third quarter of 2017, including an element of non-recurring catch-up revenue, with additional revenues expected during the term of the agreement," it said.
"We continue to see potential for additional licensing opportunities in the mobile communications market and beyond," Nokia’s chief legal officer Maria Varsellona said.