SEP licensing principles
Discover how we work with our licensees
We have one of the broadest and strongest patent portfolios in the telecommunications industry with a leading share of Standard Essential Patents in every generation of cellular standards. In addition, we hold a world-class portfolio of patents essential to video standards, such as AVC/H.264, HEVC/H.265, and VVC/H.266, as well as a significant portfolio of patents essential to the wireless LAN (WLAN) standard.
These are inventions that have been contributed to industry standards – like 4G or 5G - and have to be used in order for a device or service to comply with these standards. In practice, this means any device that is connected to any cellular network automatically uses Nokia’s intellectual property and requires a license and a royalty payment.
Without our patented inventions – and other contributions to open standards by other inventors – making a mobile phone call or streaming videos would not be possible. A connected car would not be able to give the driver up-to-date traffic information. Remote healthcare or remote learning would not be possible.
Nokia leadership in technology standardization
Nokia has contributed many fundamental technologies to the development of wireless communication and multimedia standards over the past decades. We have been instrumental in leading the standardization of many technologies that define the way in which we communicate and view data today.
The technologies we contribute to industry standards are the product of Nokia’s significant research & development (R&D) investments: Since 2000 we have invested over €130 billion in R&D. In 2020, our R&D spend was €4.1 billion – equivalent to around 19 percent of our revenues. We continue to make substantial investments in R&D and to generate new patented inventions to add to our strong and growing portfolio.
FRAND licensing balances the market
Globally standardized mobile communications and other technologies have enabled tremendous innovation, consumer choice and industry growth. Standardized technologies allow products manufactured by different companies to communicate seamlessly with each other across country borders. Open standardization also enables new market entrants to develop standardized, interoperable products without making the massive investments required to develop the standards.
Patents are a key ingredient in open standardization: they allow participating companies to disclose and share their technologies openly, knowing that their innovations will be protected.
Nokia is both a major inventor and a licensee of other companies’ technologies. We believe in a fair licensing approach that strikes a balance between the needs of those who develop and contribute technologies to standards and those who implement them. This is achieved through fair, reasonable and non-discriminatory (FRAND) licensing of standard essential patents (SEP):
- FRAND licensing enables fair and adequate compensation to the developers of standard-essential technologies, making their R&D investments economically viable.
- At the same time, FRAND licensing allows companies that wish to implement standardized technologies into their products access to the patented inventions essential to using a standard.
SEPs are customarily made available on a FRAND basis, in line with the intellectual property rights policies of the relevant standard development organizations (SDOs). We support FRAND licensing of SEPs and offer licenses to our SEPs in accordance with our undertakings to SDOs.