The Pak Banker - - COMPANIES/BOSS -

Nokia and Sam­sung are ex­pected to set­tle their two-year pa­tent dis­pute within days, with an­a­lysts fore­cast­ing a one-time pay­ment of hun­dreds of mil­lions of euros for the Fin­nish com­pany. Nokia en­tered into a bind­ing ar­bi­tra­tion with South Korea's Sam­sung in 2013 to set­tle ad­di­tional com­pen­sa­tions for a five-year pe­riod start­ing from early 2014. The In­ter­na­tional Cham­ber of Com­merce's ar­bi­tra­tion court is due to make its rul­ing on the is­sue im­mi­nently. Nordea an­a­lyst Sami Sarkamies, one of few an­a­lysts to give a pre­cise es­ti­mate, said the ver­dict could boost Nokia's op­er­at­ing profit by about 700 mil­lion euros ($758 mln) this year, fore­cast­ing the court will stip­u­late an an­nual pa­tent fee of 300 mil­lion euros. "Sam­sung has been pay­ing Nokia prob­a­bly 100 mil­lion per year, and the rate could now come up to around 300 mil­lion euros (per year). The set­tled rate will also be paid ret­ro­spec­tively for the last two years," Sarkamies said. "But they have al­ready booked per­haps 100 mil­lion a year from Sam­sung to their in­come state­ment, so the EBIT im­pact for this year could be around 700 mil­lion euros." Sarkamies has a "hold" rat­ing on Nokia shares, which have fallen 9 per­cent since last April when it an­nounced a 15.6 bil­lion euro takeover of French net­work gear ri­val Al­ca­tel-Lu­cent, due to be com­pleted this quar­ter.

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