Nokia regains upper hand in video patent dispute against Acer and Asus
Nokia secured a significant legal victory in the UK on Tuesday in its ongoing conflict with Acer and Asus regarding patents related to video coding technologies.
The UK Court of Appeal has decided to permanently stay the proceedings initiated in London by both the Taiwanese manufacturers, effectively cancelling the trial scheduled for June and July. The court ruled that Nokia had offered a license on reasonable and non-discriminatory terms, to be determined through arbitration.
This ruling enables the Finnish group to overturn a previous setback in the UK High Court. In December, Acer, Asus, and Hisense had obtained a declaration stating that a patent holder in Nokia's position must accept an interim license pending the determination of so-called FRAND (fair, reasonable, and non-discriminatory) terms. The mechanism adopted at the time provided for a provisional payment of $0.365 per device sold.
The case extends far beyond the UK market alone, as Nokia had already initiated proceedings in the US, Brazil, Germany and India prior to the action launched by Acer and Asus in London in June 2023. Hisense, also involved in the dispute, settled its disagreement before the appeal was heard.
For Nokia, the immediate financial stakes of the Acer-Asus case have not yet been quantified, but the decision bolsters a highly profitable licensing business. In 2023, the former Nokia Technologies segment generated €1.5bn in revenue and €1.06bn in operating profit, with a margin exceeding 70%. The group claims over 5,000 patented multimedia inventions since 2000, particularly in video compression, as well as over 250 licensees across its patent programs.
Nokia Oyj specializes in the design, production and marketing of telecommunications equipment. Net sales break down by activity as follows:
- development of network infrastructure solutions (40.1%): IP routers and optical networking solutions;
- development of mobile broadband network solutions (39.2%): aimed in particular at telecommunications operators. In addition, the group offers professional services (network planning and optimization, systems integration, installation, implementation and maintenance of telecom networks);
- software development (13.1%): software for customer experience management, network operations and management, communication, collaboration and billing, IoT solutions and cloud management platforms;
- development of advanced technology (7.6%).
Net sales are distributed geographically as follows: Europe (31%), North America (31.2%), India (7.7%), China (4.6%), Asia/Pacific (11%), Middle East and Africa (10.6%), and Latin America (3.9%).
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