HELSINKI: Network infrastructure and 5G technology provider Nokia has signed a new long-term patent license agreement with Apple to replace the current deal between the two companies that is set to expire at the end of 2023.
The deal, which enables Apple to use the Finnish company's technology in its products, covers Nokia's inventions in 5G and other technologies. The terms of the agreement announced late Friday remain confidential.
Nokia expects to recognize revenue related to the agreement starting January 2024, and the company said the deal is consistent with its long-term outlook disclosed in the first quarter.
"The agreement reflects the strength of Nokia's patent portfolio, decades-long investments in R&D, and contributions to cellular standards and other technologies," Nokia Technologies President Jenni Lukander said in a statement.
The previous license agreement between Apple and Nokia was announced in May 2017.
Nokia said its patent portfolio is built on more than €140 billion ($153 billion) invested in research and development since 2000, and is composed of around 20,000 patent families, including over 5,500 patent families declared essential to 5G.
The Espoo, Finland -based Nokia is one of the world's main suppliers of 5G, the latest generation of broadband technology, along with Sweden's Ericsson, China's Huawei and South Korea's Samsung.