Nokia says strategic agreement with HMD 'comes into force'
Nokia (NOK) confirms that the strategic agreement covering branding rights and intellectual property licensing with HMD Global Oy, originally announced on May 18, has come into force. HMD has announced the completion of transactions between HMD, FIH Mobile Limited, a subsidiary of Hon Hai Precision Industries (HNHPF) and Microsoft (MSFT), which means that HMD can begin operations as the new home of Nokia phones, under an exclusive global brand license for the next ten years. HMD will continue to market Nokia branded feature phones as part of an integrated portfolio, alongside a new range of smartphones and tablets to be announced later by HMD. Under the agreement, Nokia will receive royalty payments from HMD for sales of every Nokia branded mobile phone and tablet, covering both brand and intellectual property rights. Nokia is not an investor or shareholder in HMD. NOK HNHPF MSFT