Microsoft gets 30,000 patents from Nokia acquisition

Microsoft today said it would acquire Nokia’s mobile devices business for $7.2 billion or 5.44 billion euros. Of this value, the Redmond giant would pay 1.65 billion euros to acquire Nokia’s license.

In total, Microsoft will get approximately 30,000 utility patients and patient applications of Nokia from this acquisitions. This includes over 8,500 design patents, ownership of the Lumia and Asha brands, and a ten-year old license to use the Nokia brand on future phones. The 1.65 billion euros taht Microsoft would pay Nokia covers all of Nokia’s patents and applications except that of NSN’s.

Intellectual property is an important element of the msart devices business and ‘unless managed proactively, patent issues can create uncertainty for smartphone shipments,’ the company said in a statemt.

It also added that “unless managed creatively, patent royalties can add over 10 percent to the costs of a smartphone Bill of MAterials.”

Besides, with this acquisition, Nokia will be assigning more than 60 patent licenses with third parties. This include third party license agreement with Qualcomm, IBM, Motorola Mobility and Motorola Solutions.

On the closure of the acquisition, Microsoft will combine the new Nokia license with its own patent agreements. Microsoft has existing agreements with Samsung, Apple, LG, Kodak and Nortel.

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