Chinese firms seek to limit patent fees after Microsoft-Nokia deal

Nokia continues to hold valuable patents despite selling its handset business to Microsoft, with many mobile phone vendors expressing their concern that the Finnish mobile phone giant may become a patent troll, reports Guangzhou’s 21st Century Business Herald.nokia_hq

Microsoft and Nokia signed a deal regarding sales of shares and assets of Nokia on Sept. 2 last year, involving US$7.2 billion. As per the deal, Microsoft spent US$5 billion to acquire Nokia’s handset business and paid an additional US$2.2 billion for a 10-year license for Nokia’s patents.

A patent troll is a company that enforces patent rights against accused patent infringers to earn patent fees but it does not manufacture any products or supply services. Since it does not operate a major business, a patent troll is also termed a non-practicing entity (NPE).

Source: Want China Times

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