A Canadian patent licensing company Mosaid Technologies Inc. announced on September 1 it was acquiring 2,000 of Nokia's patents. Mosaid, a self-described licensor of "patented intellectual property in the areas of semiconductors and communications technologies, and develops semiconductor memory technology", in its press release said,
"A Luxembourg company holding a portfolio of 400 "patent families," including approximately 2,000 wireless patents and patent applications originally filed by Nokia. Core Wireless is going to become a wholly owned subsidiary of Mosaid."
"The patents and patent applications cover technologies used in a wide range of mobile communications devices and services. One hundred of the patent families, consisting of approximately 1,200 patents and applications, have been declared essential to second, third and fourth-generation communications standards, including GSM (Global Systems for Mobile communications), UMTS / WCDMA (Universal Mobile Telecommunications Service / Wide-Band Code Division Multiple Access) and LTE (Long Term Evolution). The rest of the portfolio consists of approximately 800 wireless implementation patents."
Mosaid didn't pay Nokia for these patents -- instead, the company makes its money from licensing patents to others and collecting royalty monies via patent-infringement suits -- the company has filed against Dell, HTC, Sony Ericsson, Research In Motion, Huawei Technologies, Wistron, ASUSteK, Asus Computer, Lexmark, Canon, Canon and Intel, among others, noted The Next Web.
Mosaid is splitting the licensing revenues from the deal with Nokia and Microsoft. According to The Globe and Mail, Mosaid's share will be about one-third.
When asked, Microsoft e-mailed the following statement to MJF -- attributable to Horacio Gutierrez, Corporate Vice President and Deputy General Counsel:
"Over the years, Nokia has developed one of the world's highest-quality patent portfolios in the mobile phone industry, representing decades of innovation as a worldwide leader in the field. We are pleased to have secured a license to the Nokia patents now acquired by MOSAID for Microsoft's products and services. In return, we have a passive economic interest in the revenue generated from the licensing of those patents to third parties. The marketplace for intellectual property is incredibly dynamic today, and this agreement is an effective way to make these Nokia innovations available to the industry and to unlock the considerable value of this IP portfolio."