19 May 2016 Current Affairs: Finland-based companies Nokia Technologies and HMD global Oy (HMD) on 18 May 2016 signed a 10-year licensing agreement to market Nokia-branded phones and tablets.
As part of this brand-licensing deal, Nokia will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both brand and intellectual property rights.
In 2014, Nokia sold its entire handset business to Microsoft under a 7.2 billion US dollars deal. While the deal majorly covered manufacturing, sales and distribution, Nokia held on to its phone patents.Other related agreements signed on 18 May 2016 :
- FIH Mobile Limited (FIH), a subsidiary of Taiwan-based Foxconn Technology Group), agreed to acquire the remainder of Microsoft's feature phone business assets, including manufacturing, sales and distribution.
- HMD and Nokia Technologies signed an agreement with FIH Mobile Limited (FIH) to establish a collaboration framework to support the building of a global business for Nokia-branded mobile phones and tablets.
The above three agreements together will give HMD full operational control of sales, marketing and distribution of Nokia-branded mobile phones and tablets across the world.