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Smartphone manufacturers try to prevent Microsoft-Nokia deal

Nokia logo in blue / white

As Nokia holds many valuable patents, several smartphone manufacturers have expressed concerns over the Microsoft-Nokia deal. Companies from different parts of the world think that Nokia could become something like a patent troll demanding an increase in royalties. The agreement signed last year regulates Microsoft’s access to Nokia’s patents for 10 years, for which Redmond agreed to pay an additional fee of $2.2 billion.

Nokia – Microsoft deal is currently being examined by authorities in several countries including China and South Korea. A seminar with vendors and experts was held in China on March 3, where a number of questions were raised. The participants want Nokia’s licensing fees to be regulated, to prevent Nokia increase the fees after the merger. In addition, companies want Microsoft to reduce Android-related fees regarding core applications such as file manager. Redmond has already signed agreements with 20 companies including ZTE and HTC, where Microsoft could demand between $5 and $20 licensing fees for each unit sold.

At the same time, South Korean companies submitted a petition on March 7, expressing the same concerns. Korea Electronics Association believes that Nokia could increase royalties or launch patent lawsuits without limitations. Therefore, the Association suggests an approval not only on the mobile unit, but also on Nokia’s patents.

Source: Want China Times