Context: Nokia is currently ahead of its peers when it comes to standard-essential patent (SEP) license agreements with Chinese automakers and other IoT companies (whether one considers automotive a separate segment or as part of IoT is an academic question). Last month, we interviewed the Acting President of Nokia Technologies, Patrick Hammarén, who highlighted his division’s headway in new segments in general and in China in particular (November 13, 2024 ip fray article).
What’s new: In a corporate blog post today, Nokia’s Chief Licensing Officer for Wireless Technologies, Susanna Martikainen, discusses the importance of connectivity to cars in general, mentions that approximately 60 automakers around the world have a license to Nokia’s patents (most of them via the Avanci pool), and says that “this week, [Nokia] concluded [its] second bilateral agreement with a leading Chinese automaker.”
Direct impact: Just like last time (in April), the company is not named, but the categorization as “leading” leaves no doubt that it is a major player. There has been no litigation so far involving Chinese automakers and wireless SEPs, neither by Nokia nor by anyone else. It is another success for Mr. Hammarén as well as Mrs. Martikainen, whom the former convinced to stay after she had originally resigned (December 9, 2024 LinkedIn post by ip fray).
Wider ramifications: Such bilateral agreements serve to demonstrate that Avanci’s one-stop collective-licensing offer is truly optional. That fact is not new, as such agreements were already concluded years ago with car makers and automotive suppliers in other countries. It may be a significant part of the reason why China’s State Administration for Market Regulation (SAMR) has apparently not seen any reason to take further steps after sending a formal letter to Avanci earlier this year that merely reiterated the rules as they stand (June 28, 2024 ip fray article).
Nokia’s automotive patent licensing program will soon celebrate its 10th birthday and is characterized by a mix of pool (Avanci) and bilateral license agreements.
Unless there has been some other licensing activity involving Chinese automakers that was kept secret (as most license agreements are), Nokia has not only had an “industry first” with the deal announced in April, but has already concluded the second such agreement before any other SEP holder has put its first one in place. And there may be more to come, given that Nokia’s corporate blog post of today mentions that “[p]ositive discussions continue with other Chinese companies.”
Another Chinese first for Nokia became known a few months ago: a first license agreement with a Chinese payment terminal maker (September 23, 2024 ip fray article).
In 2021, Daimler (Mercedes) took a bilateral license from Nokia, only to sign up to the entire Avanci pool later that year. It is more than plausible that Nokia’s license agreements with two major Chinese car makers are a harbinger of license deals between Avanci and such companies.