TMCnet Feature
August 09, 2012

Nokia Sells Patent Portfolio, Qt Software as Part of Restructuring Program

By Rory Lidstone, TMCnet Contributing Writer

Things haven't been great for Nokia (News - Alert) over the last year or so, as the company has lost its position as the world's largest cell phone maker and its agreement with Microsoft to produce Windows Phone (News - Alert) devices has done little as of yet to completely turn the company's fortunes. In order to halt losses, the Finnish phone manufacturer unveiled a massive restructuring program in June, which included cutting 10,000 jobs and divesting non-core assets.



Today, the company sold a portfolio consisting of over 500 patents and patent applications worldwide to Vringo (News - Alert), a company involved in mobile technologies and intellectual property. A fair chunk of the patents sold include some which Nokia declared essential to wireless communications standards. Nokia received $22 million for the portfolio; however, the deal struck with Vringo dictates that should those patents yield more than $22 million in revenue, Nokia will collect 35 percent of additional income.

Nokia also struck a deal with Digia, a software solution and services company, to sell Qt software technologies for an undisclosed sum. Analysts have estimated, however, that it was a fraction of the $150 million Nokia paid for Qt in 2008. Qt had been an essential part of Nokia's strategy until the company decided to stop developing its own software in lieu of Microsoft's (News - Alert) Windows Phone.

Digia plans to improve its position within the Qt ecosystem by strengthening Qt's research and development capabilities and expanding its reach to more platforms, including Android, iOS and Windows 8. The software is used by more than 450,000 developers for making applications in such industries as automotive, medical, industrial automation and defense.

Following the completion of these deals, Nokia's shares increased by 8.1 percent.

According to recent data from IDC, Windows Phone's worldwide market share sits at 3.5 percent, or 5.4 million units shipped, for the second quarter of 2012. Meanwhile Nokia's former OS of choice, Symbian (News - Alert), has managed to hang on to a 4.4 percent market share, or 6.8 million units.




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Edited by Brooke Neuman
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