Petteri Pyyny
18 May 2016 5:45
Nokia announced that it has licensed its brand exclusively for next 10 years to be used in mobile phones and tablets, globally, by HMD Global Oy.
HMD Global is a recently founded company with its sole purpose to use Nokia's brand in mobile phones and tablets. HMD will pay Nokia royalties and license fees for every device sold under Nokia brand. Company has also made an offer for Microsoft to sub-license Microsoft's current rights to use Nokia in cheap, basic functionality phones. The offer for basic phone brand licensing is expected to happen in H2, 2016.
If these deals both emerge, HMD would be the sole company allowed to use Nokia's brand in mobile phone and tablet business. HMD plans to invest more that 500 million dollars to marketing and advertising of Nokia-branded devices over the next three years.
"Nokia branded basic phones are still among the most popular phones in several markets. HMD will continue to market these phones as part of its integrated mobile phone portfolio that will also include smartphones and tables", Nokia says.
HMD plans to use Android as its operating system for Nokia-branded smartphones and tablets. Nokia doesn't own shares of HMD, but will receive a seat in HMD's board.