Nokia’s Licensing Business: A Beacon of Stability in the Smartphone Arena

Nokia, a global leader in telecommunications, has recently fortified its position in the tech market by concluding its last major smartphone patent license agreement. This strategic move not only marks the end of its renewal cycle that began in 2021 but also ushers in a period of long-term stability for its licensing business, Nokia Technologies. With no significant smartphone license agreements set to expire in the near future, Nokia is poised for steady growth and innovation.

Key Highlights:

  • Nokia has finalized its last significant smartphone patent license negotiation.
  • This culminates the renewal cycle initiated in 2021, ensuring no major agreements expire soon.
  • Nokia Technologies anticipates substantial catch-up payments in Q1 2024.
  • The company now enjoys an annual net sales run-rate of approximately EUR 1.3 billion.
  • Focus areas for growth include automotive, consumer electronics, IoT, and multimedia.

nokia phones

Strategic Licensing and Innovation:

Nokia’s licensing business has effectively become a bastion of stability and potential growth. With the completion of its smartphone patent license renewal cycle, the company has demonstrated the robustness and appeal of its patent portfolio. The agreements cover a wide array of technologies critical to modern smartphones, including those essential for 5G networks. This portfolio is a result of Nokia’s substantial investment in R&D, totaling around €150 billion since 2000.

Financial Outlook and Growth Prospects:

The culmination of these agreements has set Nokia on a favorable financial trajectory. Nokia Technologies now boasts an annual net sales run-rate of approximately EUR 1.3 billion, with expectations of significant catch-up payments boosting Q1 2024 net sales. Looking ahead, Nokia aims to expand its licensing revenue beyond smartphones into burgeoning sectors like automotive, IoT, and consumer electronics, targeting an increased run-rate of EUR 1.4-1.5 billion in the mid-term.

A Foundation for Future Innovation:

Nokia’s extensive patent portfolio, encompassing around 20,000 families with over 6,000 deemed essential to 5G, underscores its commitment to innovation and collaboration within the tech industry. By contributing its inventions to open standards, Nokia not only facilitates technological advancement but also ensures that companies can leverage these technologies under fair, reasonable, and non-discriminatory (FRAND) terms.


Nokia’s strategic maneuvers in patent licensing have solidified its position as a key player in the global technology landscape. With a stable licensing business and a forward-looking growth strategy, Nokia is well-equipped to navigate the ever-evolving tech market. The company’s focus on expanding its licensing revenue into new domains signals its commitment to driving innovation and delivering value to stakeholders.