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LG Agrees to Pay Nokia Royalties, But Rates Not Settled

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Jun 16, 2015, 11:35 AM by Eric M. Zeman

LG has signed a patent-licensing agreement with Nokia over smartphone technology, but the companies have yet to agree on pricing for the patents. Nokia may have sold its handset business to Microsoft, but it retained many of the related patents for licensing purposes. Nokia and LG have agreed to enter arbitration to settle pricing for the patents in question. The arbitration period is scheduled to conclude within two years. In the meantime, LG will be able to use Nokia's patented technology in its own smartphones. Patent-licensing has been a contentious issue for smartphone companies over the years. Samsung is currently in a similar arbitration arrangement with Nokia, which should be settled soon. Nokia's patent business earned the company $649 million in 2014. Nokia's main focus is its telecommunications and networking gear business.

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