Nokia Corporation
Stock Exchange Release
September 18, 2017 at 09:00 (CET +1)
Nokia receives decision in patent license arbitration with LG Electronics
Espoo, Finland - The International Court of Arbitration of the International Chamber of Commerce has issued its award for the
binding arbitration between Nokia and LG Electronics. The companies had previously agreed that this would settle the royalty
payment obligations for the royalty-bearing smartphone patent license from Nokia Technologies announced in June 2015.
While details of the arbitration award and license agreement remain confidential, Nokia will follow its existing practices for
disclosing patent licensing revenue in its quarterly announcements and expects that revenue for the agreement will be recognized in
the third quarter of 2017, including an element of non-recurring catch-up revenue, with additional revenues expected during the
term of the agreement.
"The use of independent arbitration to resolve differences in patent cases is a recognized best practice. We believe that this
award confirms the quality of Nokia's patent portfolio," said Maria Varsellona, chief legal officer at Nokia. "We continue to see
potential for additional licensing opportunities in the mobile communications market and beyond."
About Nokia
We create the technology to connect the world. Powered by the research and innovation of Nokia Bell Labs, we serve communications
service providers, governments, large enterprises and consumers, with the industry's most complete, end-to-end portfolio of
products, services and licensing.
From the enabling infrastructure for 5G and the Internet of Things, to emerging applications in virtual reality and digital
health, we are shaping the future of technology to transform the human experience. www.nokia.com
Media Enquiries:
Nokia
Communications
Phone: +358 (0) 10 448 4900
E-mail: press.services@nokia.com
FORWARD-LOOKING STATEMENTS
It should be noted that Nokia and its businesses are exposed to various risks and uncertainties and certain statements herein
that are not historical facts are forward-looking statements, including, without limitation, those regarding: A) our ability to
integrate Alcatel-Lucent into our operations and achieve the targeted business plans and benefits, including targeted synergies in
relation to the acquisition of Alcatel-Lucent; B) expectations, plans or benefits related to our strategies and growth management;
C) expectations, plans or benefits related to future performance of our businesses; D) expectations, plans or benefits related to
changes in organizational and operational structure; E) expectations regarding market developments, general economic conditions and
structural changes; F) expectations and targets regarding financial performance, results, operating expenses, taxes, currency
exchange rates, hedging, cost savings and competitiveness, as well as results of operations including targeted synergies and those
related to market share, prices, net sales, income and margins; G) expectations, plans or benefits related to any future
collaboration or to business collaboration agreements or patent license agreements or arbitration
awards, including income to be received under any collaboration or partnership, agreement or
award; H) timing of the deliveries of our products and services; I) expectations and targets regarding collaboration and
partnering arrangements, joint ventures or the creation of joint ventures, and the related administrative, legal, regulatory and
other conditions, as well as our expected customer reach; J) outcome of pending and threatened litigation, arbitration, disputes,
regulatory proceedings or investigations by authorities; K) expectations regarding restructurings, investments, capital structure
optimization efforts, uses of proceeds from transactions, acquisitions and divestments and our ability to achieve the financial and
operational targets set in connection with any such restructurings, investments, capital structure optimization efforts,
divestments and acquisitions; and L) statements preceded by or including "believe," "expect," "anticipate," "foresee," "sees,"
"target," "estimate," "designed," "aim," "plans," "intends," "focus," "continue," "project," "should," "is to," "will" or similar
expressions. These statements are based on management's best assumptions and beliefs in light of the information currently
available to it. Because they involve risks and uncertainties, actual results may differ materially from the results that we
currently expect. Factors, including risks and uncertainties that could cause these differences include, but are not limited to: 1)
our ability to execute our strategy, sustain or improve the operational and financial performance of our business and correctly
identify and successfully pursue business opportunities or growth; 2) our ability to achieve the anticipated benefits, synergies,
cost savings and efficiencies of the acquisition of Alcatel-Lucent, and our ability to implement our organizational and operational
structure efficiently; 3) general economic and market conditions and other developments in the economies where we operate; 4)
competition and our ability to effectively and profitably compete and invest in new competitive high-quality products, services,
upgrades and technologies and bring them to market in a timely manner; 5) our dependence on the development of the industries in
which we operate, including the cyclicality and variability of the information technology and telecommunications industries; 6) our
global business and exposure to regulatory, political or other developments in various countries or regions, including emerging
markets and the associated risks in relation to tax matters and exchange controls, among others; 7) our ability to manage and
improve our financial and operating performance, cost savings, competitiveness and synergies generally or after the acquisition of
Alcatel-Lucent; 8) our dependence on a limited number of customers and large multi-year agreements; 9) exchange rate fluctuations,
as well as hedging activities; 10) Nokia Technologies' ability to protect its IPR and to maintain and establish new sources of
patent licensing income and IPR-related revenues, particularly in the smartphone market; 11) our ability to successfully realize
the expectations, plans or benefits related to any future collaboration or business collaboration agreements and
patent license agreements or arbitration awards, including income to be received under any collaboration,
partnership, agreement or arbitration award; 12) our dependence on IPR technologies, including those
that we have developed and those that are licensed to us, and the risk of associated IPR-related legal claims, licensing costs and
restrictions on use; 13) our exposure to direct and indirect regulation, including economic or trade policies, and the reliability
of our governance, internal controls and compliance processes to prevent regulatory penalties in our business or in our joint
ventures; 14) our ability to identify and remediate material weaknesses in our internal control over financial reporting; 15) our
reliance on third-party solutions for data storage and service distribution, which expose us to risks relating to security,
regulation and cybersecurity breaches; 16) inefficiencies, breaches, malfunctions or disruptions of information technology systems;
17) Nokia Technologies' ability to generate net sales and profitability through licensing of the Nokia brand, particularly in
digital media and digital health, and the development and sales of products and services, as well as other business ventures which
may not materialize as planned; 18) our exposure to various legislative frameworks and jurisdictions that regulate fraud and
enforce economic trade sanctions and policies, and the possibility of proceedings or investigations that result in fines, penalties
or sanctions; 19) adverse developments with respect to customer financing or extended payment terms we provide to customers; 20)
the potential complex tax issues, tax disputes and tax obligations we may face in various jurisdictions, including the risk of
obligations to pay additional taxes; 21) our actual or anticipated performance, among other factors, which could reduce our ability
to utilize deferred tax assets; 22) our ability to retain, motivate, develop and recruit appropriately skilled employees; 23)
disruptions to our manufacturing, service creation, delivery, logistics and supply chain processes, and the risks related to our
geographically-concentrated production sites; 24) the impact of litigation, arbitration, agreement-related disputes or
product liability allegations associated with our business; 25) our ability to optimize our capital structure as planned and
re-establish our investment grade credit rating or otherwise improve our credit ratings; 26) our ability to achieve targeted
benefits from or successfully achieve the required administrative, legal, regulatory and other conditions and implement planned
transactions, as well as the liabilities related thereto; 27) our involvement in joint ventures and jointly-managed companies; 28)
the carrying amount of our goodwill may not be recoverable; 29) uncertainty related to the amount of dividends and equity return we
are able to distribute to shareholders for each financial period; 30) pension costs, employee fund-related costs, and healthcare
costs; and 31) risks related to undersea infrastructure, as well as the risk factors specified on pages 67 to 85 of our 2016 annual
report on Form 20-F under "Operating and financial review and prospects-Risk factors" and in our other filings with the U.S.
Securities and Exchange Commission. Other unknown or unpredictable factors or underlying assumptions subsequently proven to be
incorrect could cause actual results to differ materially from those in the forward-looking statements. We do not undertake any
obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or
otherwise, except to the extent legally required.
![](http://www.globenewswire.com/newsroom/ti?ndecode=NzA2MzkjNjk0ODM2NA==)