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Licensing principles

Discover how we work with our licensees

We have one of the broadest and strongest patent portfolios in telecommunications. It includes more than 3,500 patent families declared essential to one or more of the 2G, 3G, 4G or 5G cellular standards. In addition, we hold a world-class portfolio of Standard Essential Patents (SEPs) covering video standards, such as AVC/H.264, HEVC/H.265, and VVC/H.266, as well as a significant portfolio of SEPs on the wireless LAN (WLAN) standard.

SEPs are customarily made available on a fair, reasonable and non-discriminatory (FRAND) basis. These are sometimes called “RAND”, depending on the standardization organization.

We support the licensing of SEPs on fair, reasonable and non-discriminatory terms and are committed to offering licenses to our SEPs on these terms.

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Nokia invests in R&D

We have invested over €129 billion in research and development (R&D) over the last two decades. Our R&D spend in 2019 was €4.4 billion, equivalent to 19 percent of our revenues.

We invest in standardization

Nokia is a leader in making significant technical contributions that have been accepted into standards. We have worked with a number of standard development organizations (SDOs), such as ETSI, 3GPP and 3GPP2, where our employees have held – and continue to hold – leadership positions.

Open standardization grows the industry

Globally standardized mobile communications and other technologies have enabled tremendous innovation, consumer choice and industry growth. Industry players come together to select the best available technologies for a standard, while enabling new entrants to create products without making the massive investments required to create the standards.

FRAND licensing balances the market

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. Fair and reasonable licensing commitments for SEPs strike a fair balance between the needs of those who develop and contribute technologies and those who implement them:

  • Fair, reasonable and non-discriminatory licensing allows companies that wish to implement the standardized technologies in their products to have access to the patented inventions incorporated into the standard.
  • Fair, reasonable and non-discriminatory licensing makes the R&D investments of the contributors economically viable, as their innovations and investment are fairly and adequately compensated.
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