Samsung and Nokia patent dispute: or will face a fine of 700 million euros

According to Reuters, Nokia and Samsung have been fighting for more than two years and are expected to announce the final verdict in recent days. Relevant analysts have predicted that Samsung may face a one-off fine of 700 million euros. In 2013, Nokia and Samsung reached a binding arbitration agreement to address a five-year additional patent compensation fee from 2014. The arbitral tribunal of the International Chamber of Commerce is responsible for accepting the case and will soon make a judgment.
Sami Sarkamies, a Nordic banking analyst, gave us an accurate estimate of the fine, which he believes will bring 700 million euros ($758 million) in operating profit to Nokia this year. . It is predicted that the court will require Samsung to pay a patent fee of 300 million euros (contract 325 million US dollars) to Nokia each year.
Sakamis said: "At present, Samsung will pay 100 million euros of royalties to Nokia every year. After the verdict comes out, this amount is likely to increase to 300 million euros, and Samsung needs to make up the past according to the new rules. Two years of patent fees. But Nokia has already recorded 100 million euros of royalties per year from Samsung in their income statement, so Nokia’s profit before interest and taxes may be 700 million euros this year."
Nokia’s share price has fallen by 9% since Nokia’s acquisition of Alcatel-Lucent in France in April last year for 15.6 billion euros. However, thanks to the impact of this patent case, Sakamis has rated Nokia stock as "hold".
Nokia Alcatel's integration will be completed this quarter, but investors are still worried that the integration process will not be too smooth, and the negotiation process between Nokia and the French government's special terms is not too reassuring, but we can foresee if the final judgment result If the penalty is higher than analysts' expectations, Nokia's share price will skyrocket.
Last month, Ericsson’s share price rose sharply after Sweden’s Ericsson’s 2015 IP revenues increased by 40% due to patent licensing transactions with Apple.
Nokia, which once dominated the global mobile handset market, has now shifted its focus to communications network equipment, but despite the deadlock of the worms, Nokia still holds a large number of patents related to mobile phones.
Nokia said last month that the International Chamber of Commerce has made an estimate to it, and it will get the final verdict of the patent dispute at the end of January this year.
On Saturday, a Nokia spokesperson declined to comment on the matter and said that Nokia has nothing to add to the announcements that have been issued before.