China smartphone maker Oppo agrees to pay Nokia 5G royalties after losing protracted legal battle

China smartphone maker Oppo agrees to pay Nokia 5G royalties after losing protracted legal battle

    Oppo says it has signed a global patent agreement with Nokia, covering standard-essential patents in 5G and other cellular technologies. The two firms had been engaged in multiple patent lawsuits, including one that resulted in Oppo being banned from selling smartphones in Germany.
 

Chinese smartphone maker Oppo and Finnish electronics giant Nokia said they had struck a global patent licensing deal, ending a years-long legal battle over cellular patent rates that spanned continents.

The two companies had been engaged in multiple patent lawsuits across 12 countries since 2021, as they failed to agree on the price for Oppo to use Nokia’s 5G patent portfolios on the Chinese firm’s smartphones.

In some markets, court rulings in favour of Nokia have resulted in Oppo being banned from selling to local customers. After losing a patent infringement lawsuit to Nokia in Germany in 2022, Oppo halted smartphone sales there and delisted most products from its local website.

On Wednesday, Oppo – the world’s fourth-largest smartphone brand, according to data from research firm IDC – said it had signed a global patent cross-licensing agreement with Nokia, covering standard-essential patents (SEPs) in 5G and other cellular technologies.

SEPs are essential for products to comply with industry standards.

“Following the agreement, both parties will resolve all pending litigation in all jurisdictions,” Oppo said in a statement.

In a separate statement, Nokia said Oppo would pay royalties according to the agreed rates and settle payments it had owed Nokia. The two companies did not disclose the licensing fees and other specific terms of the deal, which are “confidential as per mutual agreement”, according to their statements.

Oppo did not comment on the deal’s implications for its German business.

The Chinese firm is still grappling with legal challenges in Germany, where a Munich court ruled in late December that Oppo infringed on the patents of InterDigital, a US wireless and mobile technology company, and granted an injunction against the Chinese company.

The deal between Nokia and Oppo came after a Chinese court supported Oppo’s petition to set lower royalty rates for Nokia’s SEPs for 2G to 5G technologies.

According to a ruling released last month, the Chongqing First Intermediate People’s Court decided that the fair licensing fees should be US$1.151 per 5G multi-mode handset in developed markets, including Europe, and US$0.707 per device in other countries, including China.

Oppo is under pressure to clear up its patent disputes and boost its global sales amid fierce competition. The Dongguan-based company’s smartphone shipments fell 9.9 per cent in 2023 amid macro economic headwinds, according to IDC data.

Earlier this month, Oppo’s domestic rival Honor, a spin-off of US-sanctioned Huawei Technologies, signed a patent licensing deal with Nokia covering SEPs in cellular technologies including 5G.