Nokia said it will see a bump in third-quarter revenue following a decision in its two-year-old patent battle with LG.
The Finnish firm said the International Court of Arbitration of the International Chamber of Commerce has issued an award in a binding arbitration case between the two companies. Nokia and LG had in 2015 agreed to arbitration in the case of a patent license for smartphones, but the award and licensing agreement are confidential.
Nokia said it will disclose revenue from the new patent-licensing deal in its quarterly announcements and expects the agreement will be noted in its next quarterly posting, “including an element of non-recurring catch-up revenue,” with additional revenues to come during the term of the deal.
“The use of independent arbitration to resolve differences in patent cases is a recognized best practice,”” said Maria Varsellona, Nokia’s chief legal officer, in a press release. “We believe that this award confirms the quality of Nokia’s patent portfolio. We continue to see potential for additional licensing opportunities in the mobile communications market and beyond.”
Shares of Nokia inched upward almost 1% Monday morning following the announcement.
Nokia last year ended a long-running patent dispute with Samsung after those two companies entered binding arbitration to settle compensation Samsung had to pay for Nokia’s phone patents over a five-year period beginning in 2014. Nokia said at the time that the decision would add roughly $2.5 billion to its bottom line over four years, but analysts said the settlement fell 15% short of expectations and didn’t bode well for pending and future arbitration deals regarding Nokia’s patents.