Benzinga | Sep 30, 2021 03:37PM EDT

Nokia To Pitch Other Connected Device Makers For Licensing Fee: Bloomberg

* Nokia Oyj (NYSE:NOK) prepares for talks with the makers of other connected devices after failed negotiations with automakers to make them pay for its inventions used in connected vehicles, Bloomberg reports.

* The gadgets, which are likely to increase with 5G technology, will let consumers operate the dishwasher from their morning commute, and farmers monitor crops and equipment from their phones using Nokia's cellular connectivity technology.

* Nokia is approaching would-be licensees armed with a strong portfolio of patents for 5G and 6G technology.

* Licensing accounts for about half of Nokia's profit and assumed higher importance as it stopped making phones and focused on networking gear and intellectual property. Nokia continues to rely heavily on royalties from its inventions used in the $378 billion global smartphone market.

* However, the Finnish company and many consumer device makers disagree on who should pay.

* When Nokia sought royalties from the connected car market, the automakers shifted the responsibility to parts suppliers.

* Nokia even collaborated with rivals Qualcomm Inc (NASDAQ:QCOM) and Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) to create a one-stop licensing shop for 2G, 3G, and 4G technology.

* Price Action: NOK shares traded higher by 0.55% at $5.46 on the last check Thursday.