Nokia signs strategic brand and intellectual property licensing agreement enabling HMD global to create new generation of Nokia-branded mobile phones and tablets
Nokia has announced their intent to bring back the iconic handset brand to the mobile phone and tablet markets. Under a strategic agreement covering branding rights and intellectual property licensing, Nokia Technologies will grant HMD global Oy (HMD)--a newly-founded company based in Finland--an exclusive global license (excluding Japan) to create Nokia-branded mobile phones and tablets for the next ten years. Under the agreement, Nokia Technologies will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both brand and intellectual property rights.
HMD will be producing a range of Nokia-branded feature phones, smartphones and tablets, where they have conditionally agreed to acquire from Microsoft the rights to use the Nokia brand on feature phones, along with certain related design rights. The Microsoft transaction is expected to close in H2 2016.
Together these agreements would make HMD the sole global licensee for all types of Nokia-branded mobile phones and tablets. HMD intends to invest over $500 million over the next three years to support the global marketing of Nokia-branded mobile phones and tablets, funded via its investors and profits from the acquired feature phone business.
HMD’s new Nokia-branded smartphone and tablets will be based on the Android operating system.
The remainder of Microsoft's feature phone business assets, including manufacturing, sales and distribution, would be acquired by FIH, which happens to be a subsidiary of Hon Hai Precision Industries (trading as Foxconn Technology Group.)
Nokia will provide HMD with branding rights and cellular standard essential patent licenses in return for royalty payments, but will not be making a financial investment or holding equity in HMD.
Once the Microsoft transaction closes, HMD would be led by Arto Nummela as CEO, who previously held senior positions at Nokia and is currently the head of Microsoft's Mobile Devices business for Greater Asia, Middle East and Africa, as well as Microsoft's global Feature Phones business. HMD's President on closing would be Florian Seiche, who is currently Senior Vice President for Europe Sales and Marketing at Microsoft Mobile, and previously held key roles at Nokia, HTC and other global brands.
So to recap, Foxconn will be manufacturing Nokia-branded phones which will be sold by HMD. In other words, Nokia is back.
Find out more on the HMD site here.
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