Nokia shares fell by nearly 5 percent on Thursday in Helsinki.
Nokia’s patent license contract with Apple expires at the end of the year. Nokia has accused Apple of violating some of its technology patents, and Apple has complained about being overcharged on the same. Nokia said that it has now filed 40 patents suits in 11 countries covering different technologies.
Patent royalties represent a sliver of Nokia’s overall revenue, more than 90 percent of which comes from sales of telecom network equipment. But the licensing payments are highly profitable at a time when the network business is suffering an industry-wide slump.
Nokia sold its handset business to Microsoft in 2014 and focused on its network business as well as a portfolio of mobile device patents. Wells Fargo Securities analyst Maynard Um, who follows both companies, said the lawsuits were negative for Apple and Nokia due to litigation costs and uncertainty over the outcome.
Nokia’s patents cover technology that reduces the need for hardware components in a phone, conserves battery life, increases radio reception, helps in recovering lost phones and enables voice recognition, among other features. Read the full article here.