HELSINKI (AP) — Network infrastructure and 5G technology provider Nokia has signed a new long-term patent licensing agreement with Apple to replace an existing deal between the two companies that is set to expire at the end of 2023.
The deal, which enables Apple to use the Finnish company’s technology in its products, covers Nokia’s inventions in the fifth generation and other technologies. The terms of the deal, announced late Friday, have been kept confidential.
Nokia expects to recognize revenue related to the agreement beginning in January 2024, and the company said the deal was in line with its long-term expectations disclosed in the first quarter.
“The agreement reflects the strength of Nokia’s patent portfolio, decades-long investments in research and development, and contributions to cellular standards and other technologies,” said Jenny Lokander, President, Nokia Technologies, in a statement.
The previous licensing agreement between Apple and Nokia was announced in May 2017.
Nokia said its patent portfolio is built on more than 140 billion euros ($153 billion) invested in research and development since 2000, and consists of about 20,000 patent families, including more than 5,500 patent families announced as necessary for the fifth generation network.
Headquartered in Espoo, Finland, Nokia is one of the world’s major suppliers of 5G technology, the latest generation of broadband technology, along with Sweden’s Ericsson, China’s Huawei and South Korea’s Samsung.