Nokia, Xiaomi Announce Multi-Year Patent And Equipment Deal

by CXOtoday News Desk    Jul 06, 2017

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Nokia and Xiaomi entered into a multi-year patent agreement, which includes cross licensing for each company’s cellular standard essential patents. Under the new business agreement, Xiaomi also acquired patent assets from Nokia.

The Finnish telecommunication network equipment, will help its Chinese partner Xiaomi run its operations in over 30 countries. Apart from smartphone business, the agreement will also also see both the companies working on areas like Internet of Things, augmented and virtual reality and artificial intelligence (AI).

hLei Jun, Chairman and CEO of Xiaomi also commented on the partnership, saying, “Our collaboration with Nokia will enable us to tap on its leadership in building large, high performance networks and formidable strength in software and services, as we seek to create even more remarkable products and services that deliver the best user experience to our Mi fans worldwide.”

The news doesn’t specify if the Nokia patents are related to those Xiaomi purchased from Microsoft. In May 2016, the Chinese company announced a partnership with Microsoft that includes a cross-license and patent transfer agreement and the pre-installation of Skype and Microsoft Office products on Xiaomi devices.

Commenting on the agreement, Rajeev Suri, President and CEO of Nokia said, “Xiaomi is one of the world’s leading smartphone manufacturers and we are delighted to have reached an agreement with them. In addition to welcoming such a prominent global technology company to our family of patent licensees, we look forward to working together on a wide range of strategic projects.”

IoT has been a focus for both companies, as Xiaomi said that its Mi IoT platform now has more than 60 million connected devices on it, with over 8 million daily active connected devices. Xiaomi had created a buzz in the world of mobile phones, leaving many wonder if it would take on the top handset maker’s market shares, namely Samsung and Apple. Experts believe, the fact that Xiaomi is in 30 countries but has never launched direct sales of handsets in the U.S. — focusing instead on accessories and so on, and selling actual devices in China, India and select other markets — has been a hindrance to that bigger potential.

So it’s natural to wonder if deals like this could help pave the way for that kind of expansion. Separately, a report claims that Xiaomi may have got its first smartphone brand partner for its in-house SoC chipset dubbed Surge S1. According to PhoneArena’s report, HMD Global and Xiaomi have signed a deal. This could mean that a future Nokia smartphone may feature Surge S1 SoC.