Microsoft’s acquisition of Nokia has yet to be concluded, but it seems that not only is the deal facing opposition from China, but recent reports have indicated that the deal could be facing resistance over in Korea as well.
According to the reports, the Korea Electronics Association has recently submitted a petition to the FCC in which they claim that Microsoft will use Nokia’s patents to help keep local manufacturers in check. In a way this is not true because Microsoft will not be buying all of Nokia’s patents, but will instead be licensing them for a period of time.
At most local manufacturers will just have to worry about Nokia having a stronger financial backing to help produce handsets compared to before.
According to the Korea Electronics Association’s lawyer, Hwang Eun-jeong, “As a mobile phone maker, Nokia rarely exercised its patent rights because of its cross-licensing with Samsung Electronics, Apple and the like, but now it can launch patent lawsuits or demand an increase in royalties without any limitation.”
Hwang later adds, “At the same time, Microsoft can expand its mobile phone business while keeping Samsung and Apple at bay by utilizing Nokia as a sort of cannon fodder.” So while Microsoft might have bought some of Nokia’s patents, it has not bought all of Nokia’s patents, although we’re not sure if there is anything regulators need to worry about. What do you guys think?