Innovation Asset Blog

Nokia can sell its business to Microsoft with no patent changes, Chinese regulators rule

Nokia recently won approval from Chinese competition authorities to sell its mobile phone business to Microsoft without having to make any alterations to its technology patent practices. The Finnish company agreed to sell its mobile phone business to Microsoft in a $7.4 billion deal in September, but to keep its own patent portfolio, according to Reuters.

Regulators in the U.S. and the European Union gave the deal their approval, but China was hesitant on fears the deal and Nokia's retention of its patents could lead to unfair licensing practices and costs, according to Reuters. Regulators needed to be consulted in this deal because of the transaction's size and the companies' respective large presence in many different markets.

Nokia said it pledges to honor fair, reasonable and non-discriminatory practices when licensing its intellectual property, and also added it had not been accused of unfair practices to begin with.

"No authority has challenged Nokia's compliance with its … undertakings related to standard-essential patents or requested that Nokia make changes to its licensing program or royalty terms," the company said in a statement.

Google and Samsung had requested Chinese regulators look into the deal to make sure it wouldn't lead to higher licensing fees, Reuters reports.

Peter Ackerman

Peter Ackerman

Founder & CEO, Innovation Asset Group, Inc.