Nokia 2012 Annual Report Download - page 58

We provide additional information about our production facilities in Item 4D. “Property, Plants and
Equipment.”
Strategic sourcing and partnering
In line with industry practice, Devices & Services sources components for our mobile devices from a
global network of suppliers. Those components include electronic components, such as chipsets,
integrated circuits, microprocessors, standard components, printed wiring boards, sensors, memory
devices, cameras, audio components, displays, batteries and chargers and mechanical components,
such as covers, connectors, key mats, antennas and mechanisms. Such hardware components
account for the majority of our overall spending on sourcing.
We also source software, applications and content from a global network of third-party companies,
application developers, content providers and industry-leading technology providers. For instance, we
obtain content from commercial partners in the music industry to offer an extensive catalog of digital
music through Nokia Music, our digital music store, and content from travel guide publishers to expand
and enhance HERE Maps.
Patents and licenses
A high level of investment by Devices & Services in research and development and rapid technological
development has meant that the role of intellectual property rights, or IPR, in our industry has always
been important. Digital convergence, multiradio solutions, alternative radio technologies and differing
business models combined with large volumes are further increasing the complexity and importance of
IPR.
The convergence has for a long time meant that complete products integrate a number of
technologies, and that multiple parties contribute to the development of new technologies. The detailed
designs of our products are based primarily on our own research and development work and design
efforts, and generally comply with all relevant and applicable public standards. We seek to safeguard
our investments in technology through adequate intellectual property protection, including patents,
design registrations, trade secrets, trademark registrations and copyrights. In addition to safeguarding
our technology advantage, they protect the unique Nokia features, look and feel and brand.
We have built our IPR portfolio since the early 1990s. During the last two decades, we have invested
approximately EUR 50 billion in research and development and have approximately 10 000 patent
families. As a leading innovator in wireless technologies, we have built one of the mobile products
market’s strongest and broadest IPR portfolios, extending across all major cellular and mobile
communications standards, software and services as well as hardware and user interface features and
functionalities. We receive IPR income from certain handset and other vendors. IPR income is reported
under Devices & Services Other.
We are a world leader in the development of the wireless technologies of GSM/EDGE, 3G/WCDMA,
HSPA, LTE and TD-SCDMA, and we have a robust patent portfolio in all of those technology areas, as
well as for CDMA2000, WiMAX and WiFi. We believe our standards-essential patent portfolio is one of
the strongest in the industry.
Our products include increasingly complex technology involving numerous patented, standardized or
proprietary technologies. The possibility of alleged infringement and related intellectual property claims
against us continues to rise as the number of entrants in the market grows, our product range becomes
more diversified, our products are increasingly used together with hardware, software or service
components that have been developed by third parties, we enter new businesses and the complexity of
technology increases. As new features are added to our products, we are also agreeing upon licensing
terms with a number of new companies in the field of new evolving technologies. We believe companies
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