Nokia and Amazon bury the hatchet over patents

Nokia and Amazon bury the hatchet over patents

Nokia and Amazon have signed a patent agreement regarding Amazon’s use of Nokia’s video technologies. This settles any legal disputes between the companies.

The terms of the agreement, including the financial details, remain confidential. According to Arvin Patel, Chief Licensing Officer New Segments at the Finnish company, the company is satisfied with the outcome and sees the collaboration as confirmation of the value of innovations in the field of video technology. He emphasizes that it is important that companies enter into fair licensing agreements for the use of technological research and development.

The legal battle between the two companies had been going on for some time. As early as 2023, Patel reported in a blog that Nokia was filing lawsuits in several countries, including the United States, Germany, India and the United Kingdom, for alleged infringement of Nokia’s multimedia patents. The technologies in question included video compression, content distribution and recommendation systems.

Substantial investments by Nokia

Nokia claims to have invested heavily in research and development in recent decades. Since 2000, the company has spent over 140 billion euros on innovation, of which more than 4.5 billion euros was spent on mobile networks and multimedia in 2024 alone. According to Patel, these investments form the basis of one of the strongest patent portfolios in the world.

The market for streaming services is growing rapidly. It involves a worldwide turnover of almost 150 billion dollars in 2022 and an expected increase to 300 billion dollars in 2027. Nokia has always emphasized that companies that utilize these technologies, such as Amazon, should pay fair compensation.

Although Nokia does not consider legal action to be its first choice, the company felt it necessary to initiate legal proceedings to enforce fair compensation. Patel indicated that Nokia always prefers negotiations and licensing agreements, as was previously achieved with other major players in the sector. He said that this did not work with Amazon and HP.

With the new agreement between Nokia and Amazon, the issue now seems to be definitively resolved.

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