Nokia Corporation (ADR) (NYSE:NOK) and HTC Corp (TPE:2498) signed a patent and technology collaboration agreement ending all of the patent litigation between the two companies.
Accordingly, Nokia Corporation (NYSE:NOK) will receive payment from HTC Corp (TPE:2498), but it did not provide the exact amount citing that the full terms of the transaction are confidential.
The two companies agreed to work together involving HTC’s LTE patent portfolio, which would further strengthen Nokia’s licensing offering. In addition, the Chinese smartphone manufacturer and the Finnish electronics company agreed to explore technology collaboration in the future.
Benefits for Nokia, HTC
Paul Melin, chief intellectual property officer of Nokia Corporation (NYSE:NOK) said, “We are very pleased to have reached a settlement and collaboration agreement with HTC, which is a long standing licensee for Nokia’s standards essential patents. This agreement validates Nokia’s implementation patents and enables us to focus on further licensing opportunities.”
On the other hand, Grace Lei, general counsel for HTC Corp (TPE:2498) said, “Nokia has one of the most preeminent patent portfolios in the industry. As an industry pioneer in smartphones with a strong patent portfolio, HTC is pleased to come to this agreement, which will enable us to stay focused on innovation for consumers.”
Nokia won injunction against HTC
In December, Nokia Corporation (NYSE:NOK) won a patent case against HTC Corp (TPE:2498) involving its technology that allows devices to share content through NFC or Bluetooth. Dr. Matthias Zigann of the Munich 1 Regional Court gave Nokia an injunction against all the Android devices of HTC that violated its patent EP 114868.
Equity risk state
The stock price of Nokia Corporation (NYSE:NOK) gained more than 9% to $7.66 per share. Over the past 52-week range, the shares of the Finnish company climbed from $3.20 to $8.20 per share.
Given the latest upward movement of the shares of Nokia Corporation (NYSE:NOK), is it safe to invest in the stock? Based on the risk management algorithms of Smartstops.net, an investment risk monitoring firm, the equities of the company are currently at an elevated risk state.
Nokia entered its current risk state when its shares started trading at $7.66 a share last January 22.