In a surprise move, Microsoft announced on September 3, that it has inked a deal with Nokia to buy the majority of Nokia's cellphone unit for 3.79 billion euros, and spending another 1.65 billion euros to license Nokia's patent portfolio, for a total of 5.44 billion euros ($7.17 billion).
   
The deal  allows Microsoft make use of more than 8,500 Nokia patents. As part of the deal, Nokia will grant Microsoft a 10-year non-exclusive license to its patents. For Nokia, it is an important moment of reinvention, and from a position of financial strength, it will reduce the patent-related cost.

The move is a clear sign that Microsoft believes it can succeed in the phone business. After the news released, share price of Nokia rose to $5.39, up 38.33% by 21:50 on September 3 Beijing time, a new record in the last 52 weeks. To be clear, Nokia is keeping most of its patent portfolio as part of the deal and the company started a new pattern of patent operation.

Inside watchers analyzed that such deals can be lucrative in the long-term, giving technology companies not only protection, but an additional source of revenue from other companies that buy licenses. For Chinese companies, there's a lot to do.

(China IP News)