China’s Ministry of Commerce approved the acquisition of Nokia’s mobile phone by Microsoft and believes that this acquisition will not lead to the abuse of patent rights. Nokia reiterated its licensing commitments on core patents.
After being acquired by Microsoft, Nokia has the potential to become a "patent rogue." Microsoft’s deal with Nokia has allowed Microsoft to acquire Nokia’s equipment and services business. This business unit is responsible for producing feature phones and smart phones. Nokia maintains the Here Maps, Solutions, Network and Advanced Technology departments. Most importantly, Nokia retains a large number of patents.
These patents are Nokia's accumulated research on wireless communication technologies for more than twenty years. Through the research and development of numerous technologies, Nokia has obtained a number of patent portfolios that are considered standard key patents (SEPs).
At present, SEP patents have been authorized by Nokia to more than 60 companies in terms of fairness, reasonableness and non-discrimination. These terms allow other companies to use Nokia's patented technology to produce products. Nokia's research on basic technologies has resulted in a lot of licensing fees. This is a win-win situation for many companies.
Patent rogue refers to companies that use their own patents to collect authorization fees. These companies obtain revenue from other companies and do not use patents to produce actual products themselves. Some competitors, including Samsung and Google, are concerned that Nokia will become a "patent rogue" after the acquisition transaction is completed.
Nokia eliminated the Chinese government’s concerns and allowed the Chinese Ministry of Commerce to approve the agreement. Nokia also reiterated its position and promised to authorize the SEP patent.
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