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Nokia-Microsoft deal now faces resistance from Korean manufacturers too.

MS NokiaKorean manufacturers have joined their Chinese counterparts in petitioning against Nokia-Microsoft deal now. The Korea Electronics Association has submitted a petition to FTC against Microsoft’s likely move to keep the local manufacturers in check on the strength of Nokia’s patents, which doesn’t make any sense however as Nokia is not selling but licensing patents to Microsoft.

The Korea Electronics Association (KEA) submitted a petition to the Fair Trade Commission (FTC) on March 7 with the Korea Software Industry Association, the Korea Semiconductor Industry Association, and the Korea Battery Industry Association, claiming that Microsoft is likely to keep Korean manufacturers in check by means of Nokia’s patents.
The Korean manufacturers also have apprehensions of Nokia turning into a patent troll because it will not manufacture any mobile phones going ahead. This also sounds like a ploy of managing to use Nokia’s patent without shelling royalty fees in future, as Nokia has made it clear that it will focus more on technology licensing along with patent licensing and it will still be a equipment manufacturer because of NSN and HERE Maps.

Korean companies are particularly concerned over the possibility of Nokia turning itself into a patent troll through the acquisition. Microsoft let Nokia own and use its mobile patents for 10 years from the acquisition.

This means that Nokia can exercise its patent rights at will, even without manufacturing handsets, for that period of time. “As a mobile phone maker, Nokia rarely exercised its patent rights because of its cross-licensing with Samsung Electronics, Apple and the like, but now it can launch patent lawsuits or demand an increase in royalties without any limitation,” said KEA lawyer Hwang Eun-jeong, adding, “At the same time, Microsoft can expand its mobile phone business while keeping Samsung and Apple at bay by utilizing Nokia as a sort of cannon fodder.”

China has already hold a seminar to hear the Nokia-Microsoft case. Samsung and Google have joined Chinese vendors in raising their so-called concern against Microsoft-Nokia deal. The Samsung factor and influence may be working in case of this Korean petition as well.

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Nayan

Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long.

He currently sports a Lumia 950 XL and Nexus 5X. Other interests include listening to Nu-Metal Hits and Kick-Boxing.
Write to him at Email: [email protected]

http://www.nokiapoweruser.com
  • The US FTC has already approved the deal. All that matters is China

  • Jeff

    Nokia has worked hard and spent billions on creating technology. If others use it, they should pay a license for what they use. I think this is a case of Asian countries wanting to use Nokia’s patents for free. That is considered stealing and is wrong. It is fair to pay for what you use. Shame on you if you think otherwise.

  • JLIT99

    It’s important to understand that Nokia without it’s D&S divisions won’t be the same company.

    It will be much smaller – and an easy target for prey such as shareholders looking for a huge dividend (e.g. Carl Icahn) or even a full acquisition by another party for their patents.

    Bear in mind that US shareholders had pressurised the Nokia board to find a foreign CEO, which lead to Anissi Vanjoki not getting the job, and Elop coming along and executing his failed strategy.

    So, whilst we have fond memories of Nokia from our childhood, the possibility it could “go rouge” at the behest of its owners / shareholders and start using its patents excessively is certainly possible.

    • Kamal

      Perhaps we need to understand why manufacturers from only countries like China and Korea are trying to put hurdles. They have been the worst IPR violators and try to defend themselves by all possible means (HTC is a classic case). But that is highly unfair stance and is anti-innovation. Why would any company put billions in generating IPR when any tom, dick & harry will abuse it because it is from China and Korea.

  • Meandmy

    Would like Nokia to raise their patent prices and put Samsung out of business…

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