Nokia Plans to Use Its Intellectual Property for Gain

IP News and Information

The smartphone market is already very crowded and in the U.S. that market is mainly dominated by two operating systems Apple’s iOS and Google’s Android. As far as handset makers go, again Apple is one of the two major players in the industry, together with Samsung. Anyone who has tried to push its way into the market is really just battling for third place. Along the way several companies have tried and failed and some companies that were once dominant players are now barely still breathing or have already been laid to rest, like Blackberry and Nokia, for example.

Nokia Looking to Make a Comeback

In fact, in Nokia’s case, the company had such a hard time competing with the big boys that it eventually sold its entire handset business to Microsoft along with giving it licensing rights to its large patent portfolio. Because of that agreement, Nokia cannot enter the mobile market until 2016. That’s because it signed a non-compete clause with Microsoft that doesn’t expire until next year. However, 2016 is just around the corner and the company is already making big plans to get back into the mobile business. Although, that doesn’t mean it is going to try to develop and sell new handsets. Instead, the company has other plans in store as it attempts to become a relevant and even important player in the mobile market once again.

New Strategy This Time Around

This time around, Nokia will look to join with other companies by agreeing to brand-license deals and allowing those partners to handle the manufacturing instead. That means while Nokia will still work on designing new handsets it will actually lend other companies their brand and let them manufacture, market and sell the devices, while it collects the royalties. So in reality, Nokia won’t really be getting back into the mobile phone market, per se, but it will still be in the market via licensing deals with other companies. The road back to the mobile market could be bumpy and it could be difficult for Nokia to become a relevant player again, but by using its existing IP portfolio it could very well have the right formula to become significant again.

Utilizing Valuable IP

That’s because when it comes to intellectual property, Nokia does hold an impressive IP portfolio, which consists of several valuable patents. The company believes that while this approach might take more time, in the end it is most likely a much safer way to re-enter the mobile market and one that carries much less risk. Time will tell if the company’s plan will be successful, but by using it’s IP as a means of establishing new revenue streams it could see very favorable results. Thus it is with all companies that own valuable intellectual property. By utilizing IP for monetization and commercialization companies can generate revenue now and in the future with the right licensing deals in place.

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