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Monday, April 25, 2011
Microsoft and Nokia Sign the Definitive Agreement

Nokia and Microsoft signed the definitive agreement for a strategic partnership between the two companies.

The companies plan to build a new global mobile ecosystem "that is unlike any other." Their team members are already working together toward a multi-year product roadmap and are on-schedule to deliver volume shipments in 2012 although the pressure is on for first delivery in 2011. In the coming years, Microsoft and Nokia plan to aggressively work to take Nokia products using Windows Phone to new geographies, at new price points.

The companies promised to offer "unique innovation and differentiation across hardware, software and services" as the Nokia products using Windows Phone roll-out, delivering consumer experiences in mapping, search, gaming, social media, advertising and productivity. Along the way, users can also expect an increased focus on mobile business and productivity scenarios that build on Microsoft?s cloud services, new features for Symbian, and new capabilities for Windows Phone devices.

The relationship between the companies is structured around four broad areas:

- Nokia to deliver mapping, navigation, and certain location-based services to the Windows Phone ecosystem. Nokia will "build innovation" on top of the Windows Phone platform in areas such as imaging, while contributing expertise on hardware design and language support, and helping to drive the development of the Windows Phone platform. Microsoft will provide Bing search services across the Nokia device portfolio as well as contributing strength in productivity, advertising, gaming, social media and a variety of other services.

- Joint developer outreach and application sourcing, to support the creation of new local and global applications, including making Windows Phone developer registration free for all Nokia developers.

- Opening a new Nokia-branded global application store that leverages the Windows Marketplace infrastructure. Developers will be able to publish and distribute applications through a single developer portal to hundreds of millions of consumers that use Windows Phone, Symbian and Series 40 devices.

- Contribution of Nokia?s expertise in operator billing to ensure participants in the Windows Phone ecosystem can take advantage of Nokia?s billing agreements with 112 operators in 36 markets.

- Microsoft will receive a running royalty from Nokia for the Windows Phone platform, starting when the first Nokia products incorporating Windows Phone ship.

- In recognition of the nature of Nokia?s agreement with Microsoft and the contributions that Nokia is providing, Nokia will receive payments measured in the billions of dollars.

- An agreement that recognizes the value of intellectual property and puts in place mechanisms for exchanging rights to intellectual property. Nokia will receive substantial payments under the agreement.

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