Finnish telecom firm Nokia (NYSE: NOK) and Chinese mobile handset developer Xiaomi recently released a joint press release in which a multi-year patent cross-licensing agreement was announced so that both companies owned any firm in cellular space. Access to standard required patents (SEPs). Apart from this, Xiaomi was not included in the press announcement details of the financial statements and patents involved in buying the perfect patent from Nokia.
Background
The agreement terms include agreement for cooperation on some development projects. Nokia provides network infrastructure tools that will meet the high-capacity and low-power criteria, which is required by large web service providers and datacenters. Nokia’s FP4 network processor will be used among companies for routing Internet Protocol (IP) addresses. Together, companies will develop optical transport solutions for data center interconnect as well as data center fabric solutions. Apart from this, Nokia and Xiaomi are also committed to future collaborations of projects in the Internet of Internet, enhanced reality, virtual reality and artificial intelligence. This agreement is the most recent move made by Xiaomi to improve its corporate profile outside of China.
Xiaomi announcement
This March, Xiaomi started a smartphone production in its second factory in India, which was entering the country in 2014. In India alone, the revenue of 2016 of Xiaomi reached $ 1 billion and the company expects that in 2017 it will double the sales in that country. In China, domestic sales of Xiaomi decreased in 2016, when it decreased 36 percent in sales compared to 2015 and it was ranked fifth in the Chinese market after placing first in 2015. In February this year, Xiaomi announced that it will develop a phone chipset designed in a bid to separate itself from competition. The company has recently announced plans to make 1,000 “Ii Homes” across China from 2019 to improve its physical presence in its domestic market.
Nokia in a new market
Cross-licensing agreement also comes at a time when Nokia looks a new lane in the global Smartphone market. The news of the upcoming Nokia 8 shows that the model will be ready for high-end consumers. To avoid competition with Apple and Samsung, Nokia is re-entering America’s Smartphone market in the week, with low-end models priced at around $ 200 to $ 300. Although its reported income for the first quarter has declined 2.5 percent annually, since the beginning of the 2017 calendar year Nokia’s share price has increased by 28 percent.
Conclusion
According to a white paper issued by Nokia, the company had installed 30,000 individual patents in 9,900 patent families of 2016. According to the report from CNBC, Xiaomi has applied for 16,000 patents since its establishment and has been given 4,000 patents, out of which 1,887 markets outside China
