Fri05182012

Last update08:17:15 PM GMT

Back Gadgets Mobiles Microsoft's contract with Nokia rumored at $1B

Microsoft's contract with Nokia rumored at $1B

Microsoft's contract with Nokia rumored at $1B

It is been less than a month since Nokia and Microsoft announced their strategic partnership, which will see the two organizations working together in several areas, although primarily mobile phones. One detail which was not disclosed at the time was what kind of dollar investment Microsoft had promised Nokia for marketing and developing Nokia-made handsets that will ship with Microsoft's Windows Phone OS.

That detail has been made a bit clearer with a report by Bloomberg earlier today stating that Microsoft plans to pay Nokia more than $1 billion, while Nokia, consequently, pays Microsoft a licensing fee for each copy of Windows Phone 7, together with the right to use some of Microsoft's expansive patent portfolio.

In addition, Microsoft is said to be paying some of its investment long before the first Nokia phones running Windows Phone 7 go into the sales channel. The deal, Bloomberg's Dina Bass says, will run for more than 5 years and it has not signed. A Microsoft representative declined to comment on the problem. Nokia did not right away react to a request comment.