The Finnish telecom equipment manufacturer made headlines on Monday with the announcement of a multi-year 5G patent license agreement with China’s Vivo. This agreement officially marks Nokia’s expansion into the 5G patent realm and is expected to commence the recognition of net sales in the first quarter of 2024.

This is Nokia’s sixth notable smartphone licensing deal in the past 13 months, adding to a growing portfolio that includes agreements with industry giants like Apple, Samsung, Oppo, Honor, and Huawei.

Jenni Lukander, President of Nokia Technologies, expressed optimism about the agreement, highlighting its significance in the broader context of Nokia’s smartphone license renewal cycle. Lukander highlighted Nokia’s substantial contribution to developing key technologies vital to the smartphone industry, underscoring the long-term stability these agreements bring to Nokia’s licensing business.

Under the terms of the agreement, Vivo will make royalty payments to Nokia, along with catch-up payments to cover the dispute period. Xianwen Xu, General Manager of the Legal Affairs Department at Vivo, echoed Nokia’s sentiments, expressing satisfaction with the global cross-license agreement and emphasizing its role in fostering a positive development environment within the industry.

Nokia Technologies also provided insights into its broader strategy, noting progress in growth areas such as automotive, consumer electronics, IoT, and multimedia. The company remains confident in its annual net sales run-rate, projecting a return to €1.4 to €1.5 billion in the mid-term.

This latest agreement underscores Nokia’s commitment to innovation and collaboration in the global smartphone ecosystem, paving the way for enhanced technological advancements and consumer experiences in the years to come.