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Nokia seeks compensation for the use of our connectivity technologies in payment terminals

Hand paying on terminal with smartphone

Today, we have initiated legal action against Verifone for the unauthorized use of Nokia’s connectivity technologies in their point of sales (POS) devices. Cases have been filed in Germany and the Unified Patent Court in Europe. Verifone’s devices infringe a mix of Nokia’s patented inventions covering fundamental technologies in cellular and Wi-Fi standards.

Nokia plays a pivotal role in developing wireless technologies

Since 2000, Nokia has invested around 150 billion EUR in R&D and, last year alone, we invested more than 4.3 billion EUR. We also take a leadership role in developing global technology standards, with our standardization experts holding more than 100 board member and other senior positions across all key standardization bodies. As result of this decades-long commitment to R&D and standardization, we own one of the broadest and most valuable patent portfolios in the world comprising of around 20,000 patent families, including over 6,000 patent families declared as essential to the 5G standard. In addition, we have valuable assets in other technologies such as Wi-Fi, security, UI/UX and multimedia.

Wireless point-of-sale payment devices rely on our technologies

Nokia contributes its inventions to global technology standards so that other companies - including Verifone - can use them in their products without needing to make their own substantial investments in the relevant standards. Or to put it another way, the market in point-of-sales payment devices is enabled by the cellular and Wi-Fi inventions that Nokia has contributed to open standards. We are seeking fair compensation for the use of these inventions by point-of-sale payment companies. The royalties we seek will help to fund research and development into the next generation of communication technologies, like 5G-Advanced and 6G. Licensing on Fair, Reasonable and Non-Discriminatory (FRAND) terms creates a virtuous circle powering innovation and bringing advanced technologies to consumers. However, companies who refuse to agree a license on fair terms put the whole ecosystem at risk and gain an anti-competitive advantage over companies who play by the rules.

Litigation is always our last resort

Nokia already has a substantial number of patent license agreements in place with point of sales terminal manufacturers, including a global leader in the market, along with every major smartphone vendor and every major Western car maker, as well as other companies whose products and services rely on connectivity. The vast majority of these agreements have been concluded amicably. In fact, since 2017, we have signed over 250 patent licenses agreements and litigation was required in less than three percent of these. We have been in discussions with Verifone for several years but unfortunately it is clear that the company is not willing to agree a license on fair terms. Our only option is therefore to initiate legal action. That said, our preference – as always – is to resolve these matters amicably and our door remains open for good-faith negotiations.

Nokia seeks compensation from Verifone for the use of our connectivity patents

Patrik  Hammarén

About Patrik Hammarén

Patrik Hammarén is VP, Head of IoT Licensing Program at Nokia Technologies. He oversees all Nokia’s global patent licensing activities in the growing Internet of Things domain. This includes patent licensing of all wirelessly connected devices other than mobile handsets with companies located in all geographies.

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