I read a past article mentioning Nokia will not be limited on patent royalties.I have a copy of said article but cannot find it.
Business Korea has just published a very provocative piece that depicts a monstrous troll attacking its home country’s pride and joy, Samsung. That troll, you’ll be surprised to learn, is Nokia.
The reason for this is easy to understand: Samsung may be forced to pay one of the history’s biggest patent royalty sums to Nokia, and fellow Korean electronics titan LG is not scot free, either.
What unleashed the beast in the Finnish company was its decision to sell its handset division to Microsoft a while back. As long as Nokia was a phone company, it was bound by a web of cross-licensing deals limiting how much it can charge for its thousands of handset-related patents. Nokia needed to use both essential and non-essential patents held by Samsung, Apple, Motorola and other industry giants, which put a rather severe cap on how much it could charge other phone vendors.
But when Nokia got out of handset business, the need for those cross-licensing deals vanished and Nokia emerged as a Non-Practicing Entity (NPE). Or as Business Korea defines the term, a patent troll.
The paper quotes an unnamed patent industry official, who says that “royalties demanded by Nokia and Microsoft are estimated at trillions of won for Samsung and LG, respectively. Some in the industry say that the amount is the largest-ever paid by the two handset makers.”It is possible that Korean industry officials are getting ready to try to rein in Nokia’s patent licensing machine and these leaked comments are an early sign of a coming battle. What makes Nokia’s patent portfolio so formidable is its range. Nokia launched a smartphone called the Communicator way back in 1996, so it started amassing patents dealing with mobile email, mobile photo messaging, mobile games and mobile news distribution early on. But in addition to software patents, Nokia was also an early leader in power consumption, antenna design and other hardware segments.
This battle could easily escalate into a wider, government-level drama on whether countries have the right to cap patent licensing fees in certain industries.
Exchange transaction Buy
Share class NOK1V
Average price/share 6.1128 EUR
Highest price/share 6.1850 EUR
Lowest price/share 6.0650 EUR
Total price 4,999,659.12 EUR
The shares held by Nokia Corporation on 28.08.2014:
NOK1V 50,871,076 Total shares Nokia bought back as of 8/28 11,626,030
Jeff is referring to Nokia taking Samsung back to court and will receive more money from Samsung 2015 a win for Nokia.
Nokia averaging 800,000 share buyback a day since 8/11 for a total of 10,808,130 as of 8,27.
The Gear S has GPS and the usual health-and-fitness sensors, along with Samsung’s S Health features and the ability to use the Nike+ Running app and similar apps. It will use Nokia’s Here for pedestrian navigation, and the Financial Times is providing a “fastFT” news service. The device can sync information with the user’s smartphone when paired — it features Bluetooth 4.1.
Exchange transaction Buy
Share class NOK1V
Average price/share 6.2071 EUR
Highest price/share 6.2800 EUR
Lowest price/share 6.1700 EUR
Total price 4,999,819.05 EUR
The shares held by Nokia Corporation on 27.08.2014:
TOTAL SHARES NOKIA BOUGHT BACK SINCE 8/11/14 10,808,130
What are you doing on message boards you should be CEO since you know it all
Nothing wrong with someones opinion.Where was the smart money when Nokia was trading under 2.00 while I was buying they were saying to sell do not touch Nokia now stock over 8.00.You know as well as I do that it only takes one idea take hold for a stock to take off.Happy investing gssim :)
Even if phone out put is slowing down Nokia will be taking Apple back to court 2016 and where they will be making the big money will be licensing out their patents.Nokia will 15+ next year.
Royalty payments are just a bonus for Nokia.Licensing out the patents is where the money is anyway. According to Strategy Analytics, Samsung occupies the top spot on the global market for LTE smartphones in Q2 this year. The Korean giant took the leadership position with 28.6 million devices sold on its way to 32.2% share.Samsung overtook Apple, which was the leading vendor in the previous quarter with 40.5% share from 32.7 million devices sold. The Cupertino giant recorded 31.9% market share in Q2.
LG came in a distant third in the race with 5.2% of the market in Q2. Combined, the trio of manufacturers holds close to 70% share of the market for LTE handset in the quarter.
Samsung’s success in the second quarter of this year was achieved thanks to the launch of the Galaxy S5 flagship, as well as its broader range of 4G smartphones. The ageing iPhone 5s, combined with the lack of low and mid-range handsets from Cupertino dragged it down from the top spot.Samsung doing well.25 August, 2014
Did you read? Nokia and Samsung renegotiate the deal terms, 2013 will be taken as reference year for calculations.Nokia will receive increased royalty payments for 2013 and 2014 Think about that
Nokia’s patent licensing deal with Samsung has expired in 2013 and when Nokia and Samsung renegotiate the deal terms, 2013 will be taken as reference year for calculations. Now as Samsung’s relevant revenue has grown to be 36 times of Nokia’s relevant revenue in 2013, the royalty that Nokia will receive from Samsung will be 36 times of what it received from the earlier deal with Samsung. During the time of inking of earlier deal in 2007, Nokia’s revenue was 2.2 times more than Samsung and thus this time around, Nokia may see much higher royalty out of its deal with Samsung. According to the analysts, even if Nokia gets 20 times of what it used to receive from earlier deal, it is huge!!
Similarly, Nokia may be able to get huge boost in royalty payment from Apple, when it renegotiates the current deal expiring in 2016. Apple has also gained 20 times in reference revenue as compared to Nokia in 2010.
Based on the above analysis, JPMorgan has Overweight rating on the Nokia stock with #$%$8 price target.