There was a time when it was considered a show off to have mobile phone. In late Nineties Nokia was the leading mobile selling company worldwide. But now the story is altogether different as Nokia is struggling by falling sales and a loss of market share.
Analysts have attributed Nokia’s decline in large part as sales of Nokia’s new Lumia phones have not compensated for diving sales of legacy products as the group loses out to in comparison to Apple Inc ,whose iphone redefined the smart phone market in 2007.
Amidst the crisis Nokia’s patents have emerged as the struggling company’s most valuable and stable assets
Patent is the Only asset to Sustain in the Market for the Struggling Company :
Nokia’s position as a patent powerhouse goes back more than 20 years— it ranks along with Qualcomm and Ericsson’s as a holder of the largest patent portfolios in the industry .
Nokia already earns €500m (£401m) annually from patent royalties in key areas of mobile telephony from a number of companies –including Apple , which last year was forced to admit defeat from Nokia after a series of legal proceedings and signed a contract worth millions every quarter for the use of Nokia patents in its iPhone and iPad.
Nokia also has the successful example of its partner Microsoft Corp. which has signed up some 10 vendors including HTC and Samsung Electronics Co. Ltd. to pay licensing fees for their Android Devices.
Earlier ,Nokia has also sued HTC Corp. & View Sonic Corp. for infringing its patents on Mobile technology & Software Patents. As evident ,full exploitation of patents could be crucial for longer-term survival of the company.
It is speculated that Android are likely to be among the next targeted by the ailing Nokia .
Analysts, have gone one step further & have commented that Nokia is likely soon to go after top Chinese & Indian vendors , as well as kindle maker Amazon.com Inc. to make money .
Worth of Nokia’s Patent ?
Nokia has already filed cases relating to 45 patents in the US and Germany against HTC , Viewsonic & BlackBerry maker RIM. Microsoft is already paying Nokia $1 billion a year to use its software on Lumia smart phones. And it is speculated by the experts in the technology sector said that this support could extend well beyond that amount, if Nokia’s problems intensify.
It is also speculated that Nokia could earn $800 million this year alone if it signed up just half of Android makers.
Google’s planned $ 125 billion acquisition of Motorola Mobility Holdings has again underlined the value of Intellectual Property in the fast changing telecoms world where established players are seeking to keep out newer rivals.
Another example of the value of patents came in July,2011 when a group of six firms including Apple , Research In Motion Ltd and Ericsson’s paid $4.5 billion for 6,000 patents of bankrupt Nortel Networks .
Nokia chief executive has clearly showed his intention by mentioning that only about 10% is made by sales which is just a chunk of money in comparison to money made by enforcing the patents.
Thus, It can be inferred that it is well evident from the above cases that amidst crisis enforcement of patents has proved once again to be the only help even for the big companies.