Nokia brand returning to mobile phones and tablets
Nokia has signed a 10-year strategic brand and intellectual property licensing agreement with HMD global.
The deal enables the freshly founded Finland-based company to create a new generation of Nokia-branded mobile phones and tablets for the global market.
HMD has conditionally agreed to acquire the rights to use the Nokia brand on feature phones from Microsoft, along with certain related design rights. The remainder of Microsoft’s feature phone business assets have been acquired by FIH Mobile Limited. Both HMD and Nokia Technologies have signed an agreement with FIH to establish a collaboration framework to support the building of a global business for Nokia-branded phones and tablets.
HMD intends to invest over 500 million US dollars over the next three years to fuel the international marketing of the new Nokia-branded products. Nokia itself will not be making a financial investment or holding equity in HMD. Instead, Nokia Technologies will receive royalty payments from HMD for sales.
“Today marks the beginning of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name,” says Arto Nummela, CEO-designate of HMD. “Working with HMD and FIH will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model.”