Nokia said it will receive royalty payments from HMD for sales of Nokia-branded mobile products, covering both brand and intellectual property rights.
Once the world’s biggest maker of mobile phones, Nokia was wrong footed by the rise of smartphones and eclipsed by Apple and Samsung. It sold its handset business to Microsoft in 2014.
It however held on to its phone patents and started to prepare a comeback by brand-licensing, although it has had to wait due to a non-compete deal with Microsoft.
Microsoft on Wednesday announced it would sell its feature phone assets to FIH Mobile, a subsidiary of Foxconn, and HMD.
As part of that deal, HMD is buying the rights to use the Nokia brand on feature phones.