Nokia expects its intellectual property rights (IPR) portfolio to continue growing, driven mainly by the world`s emerging markets.
Speaking at a special media briefing in Finland recently, Nokia IPR director Ulla James explained that the biggest increase in patent volumes will come from developing regions, as these are areas where many technology companies are actively pushing innovation.
"Thus, our competition is coming from there as well (necessitating the registration of patents)," said James.
She explained that, by their nature, patents create an incentive for companies to invent, while limiting the risk to returns on research and development investment. Since the 1990s, Nokia has been building its IPR portfolio, which now contains some 16 000 patented products worldwide, and has spent some 25 billion euros on research and development during this period.
This is one of the strongest IPR portfolios in the industry, James claimed, adding that GSM products make up 25% of the essential patents in Nokia`s IPR arsenal, while CDMA products account for another 28% of essential patents.
Last year, Nokia`s research and development spend totalled 3.825 billion euros, and personnel in this area accounts for 36% of Nokia`s total workforce.
More than 20% of Nokia`s patents have been used by other players in the industry, while the two Nokia patents used by most phone manufacturers in most of their phones are caller name display and caller-specific ring tunes, she said.
"The portfolio gives Nokia a definite cost advantage, and our range of CDMA patents are expected to increase."
James also stated that, as Nokia is moving towards digital convergence, its exposure to non-telecom IPR will increase - a trend seen with mobile devices, where camera phones are now outgrowing digital still camera sales.
"Innovation thrives from healthy competition. Thus IPR is crucial, but should not be a hindrance to innovation."
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