Nokia settles IP dispute with HTC, shares jump


Following a series of legal victories, Nokia (NOK +7.7%) has settled its far-reaching patent dispute with HTC (HTCKF).

Details are light, but the companies do note HTC "will make payments" to Nokia, and that Nokia's "licensing offering" for OEMs will now be strengthened by the inclusion of HTC's 4G LTE patent portfolio. Nokia and HTC also say they'll "explore future technology collaboration opportunities."

Nokia shares have shot higher in afternoon trading. The company has been widely expected to step up its IP monetization efforts in the wake of the Microsoft deal, which eliminates Nokia's need for smartphone/tablet patent cross-licensing.

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Comments (28)
  • Mking30
    , contributor
    Comments (142) | Send Message
     
    ok, well thats why then.... Knew something was going down, that was a crazy 3mins, up 5-6-7-8-9%, shew....
    7 Feb 2014, 03:03 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11325) | Send Message
     
    I can't figure out how Nokia doesn't see $11 by 2016.
    8 Feb 2014, 03:49 PM Reply Like
  • JMajoris
    , contributor
    Comments (1408) | Send Message
     
    Just the beginning.....
    7 Feb 2014, 03:08 PM Reply Like
  • wigit5
    , contributor
    Comments (4365) | Send Message
     
    One can only hope we see a lot of these notes over the next 6 months...
    7 Feb 2014, 03:09 PM Reply Like
  • Rhinoish
    , contributor
    Comments (125) | Send Message
     
    amen to that
    7 Feb 2014, 03:30 PM Reply Like
  • Riimpekki
    , contributor
    Comments (79) | Send Message
     
    Google and android are next in line and that cake will be billions of dollars.
    7 Feb 2014, 03:27 PM Reply Like
  • joshvegas
    , contributor
    Comments (524) | Send Message
     
    Could that happen in the first half of 14?
    7 Feb 2014, 03:36 PM Reply Like
  • seymore4
    , contributor
    Comments (81) | Send Message
     
    woot wooot the party's just getting started folks
    7 Feb 2014, 03:31 PM Reply Like
  • slcUTAH
    , contributor
    Comments (542) | Send Message
     
    This is just the beginning. My only regret was not adding more shares to my position when NOK and the overall market sold off but that's OK. Long NOK.

     

    Cheers.
    7 Feb 2014, 03:36 PM Reply Like
  • La Rue
    , contributor
    Comments (900) | Send Message
     
    Buckle up time of year for sure :)
    7 Feb 2014, 03:43 PM Reply Like
  • alphaRAJU
    , contributor
    Comments (484) | Send Message
     
    Go, Go Go Nokia!
    7 Feb 2014, 04:33 PM Reply Like
  • ATX
    , contributor
    Comments (129) | Send Message
     
    Now the people who said NOK's IP was worthless has nothing to say, first HTC, then Samsung, the rest of the world will follow, any company who make smartphone will be paying money to NOK
    7 Feb 2014, 05:31 PM Reply Like
  • Videnak
    , contributor
    Comments (501) | Send Message
     
    I have to admit, I was one of them. I dont believe, that the IP has some significant value and recent stock manipulation did not completely convinced me). And to those celebrating recent growth I would like to point out, that NOK is still 6% below Jan1 value. :-)
    10 Feb 2014, 03:55 AM Reply Like
  • joshvegas
    , contributor
    Comments (524) | Send Message
     
    HTC is very good precedent but how much can it really pay?
    Could it change outlook for 1Q14 ER?
    10 Feb 2014, 04:04 AM Reply Like
  • DWD Investing
    , contributor
    Comments (13380) | Send Message
     
    Two days ago I reported that in after hours, there were 4 large blocks, so large that I'd never seen anything like it.
    200K
    230K
    500K
    1 million shares in one block.
    Kinda makes you wonder, doesn't it? Fing insiders.
    7 Feb 2014, 09:10 PM Reply Like
  • DWD Investing
    , contributor
    Comments (13380) | Send Message
     
    This could go either way. Shares sell off, people take their profits, and we're right back to the waiting game--waiting to see if Nokia can do something in the market. I'm not talking about SP. I'm talking about obtaining market share, that is, competing for profit. If the SP falls back, then this is nothing more than buy the news sell the news. In other words, "investors" are just trading it, not investing it.
    -
    Scenario two: This signals some sort of pivot point for bigger investors, something that makes them feel like Nokia is really going to deliver on their IP section and that they really do have something future looking. In other words, it suggest to them that Nokia has become investment grade index worthy. Something that impressed me was the 'collaboration' statement between HTC and Nokia. That's truly innovation on Nokia's part. Sue a company for ripping you off, then after they lose, invite them to 'share' technology. Very nice. If that truly is the case, then shares are probably going to look pretty nice in a few months.
    -
    My idea: SP falls back some ranges around 7 bucks, and index funds wait to see QoQ revenue growth. In that case, probably ranged tight around 7 for the next year or so, unless Nokia pulls a rabbit out of its hat, that is, some sort of technological break through that everyone has to have.
    7 Feb 2014, 09:15 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2146) | Send Message
     
    So, we do not know the value of this deal, but Mr Market added ~$1.5B to Nokia's market cap thanks to this. Using 10xEBIT model for license revenue (per JPM, see the link below for details), the market estimates ~$150M annual revenue from this.

     

    The real thing will be the non-SEP royalty deal w/ Samsung. My minimum estimate (assuming $1.8 fee per device, i.e. what $MSFT collects in Android licensing fees according to Goldman Sachs) is that that deal will add at least ~$1.9 to the SP ($0.72B annual revenue, ~$7.2B to the market cap):
    http://bit.ly/162M1zQ

     

    Some other analysts estimate that MSFT collects ~$10 per device from Samsung...you do the math :)

     

    It took Nokia less than two years to knock-out HTC. The litigation started in April/May 2012. Now Nokia has this licensing agreement conclusion, and all the previous individual litigation wins under its belt, including Android related material, making its case against Samsung stronger. So we might see a non-SEP deal w/ Samsung in less than two years.
    7 Feb 2014, 09:35 PM Reply Like
  • sidiji
    , contributor
    Comments (272) | Send Message
     
    excellent analysis seppo
    8 Feb 2014, 06:42 PM Reply Like
  • Kamminga
    , contributor
    Comments (186) | Send Message
     
    Anyone know the Helsinki short interest? Should be fun Monday.
    8 Feb 2014, 03:24 AM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2146) | Send Message
     
    Very small, roughly 1.20% of the float.
    The shorts got vaporized in September and have not dared to come back:
    http://bit.ly/1eBqscC
    8 Feb 2014, 08:21 AM Reply Like
  • Timothy Bryan
    , contributor
    Comments (984) | Send Message
     
    You guys should understand that Europe hasn't had a crack in this run-up following the announcement. We will get at least another 30 cents on Monday in Helsinki before we open here.
    8 Feb 2014, 07:55 AM Reply Like
  • La Rue
    , contributor
    Comments (900) | Send Message
     
    I agree with that and then some..........
    8 Feb 2014, 09:22 AM Reply Like
  • seymore4
    , contributor
    Comments (81) | Send Message
     
    You're right... I did not realize that. NIIIICE
    8 Feb 2014, 07:00 PM Reply Like
  • wiredless
    , contributor
    Comments (68) | Send Message
     
    We've gotten the 30 cents this morning. Down. 4% . The more I know, the less I understand.
    10 Feb 2014, 10:31 AM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2146) | Send Message
     
    @wiredless

     

    Perhaps this might have something to do with the 4% down:
    http://seekingalpha.co...
    10 Feb 2014, 10:34 AM Reply Like
  • Timothy Bryan
    , contributor
    Comments (984) | Send Message
     
    LOL, it is so crazy.
    10 Feb 2014, 12:33 PM Reply Like
  • Chunnie
    , contributor
    Comments (5) | Send Message
     
    I wish Nokia the best of getting what is rightfully their property, respected and compensated by these renegade competitors.
    8 Feb 2014, 12:30 PM Reply Like
  • Chunnie
    , contributor
    Comments (5) | Send Message
     
    I wish AMD and Nokia could put their heads together
    8 Feb 2014, 12:30 PM Reply Like
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