Nokia, Sony/Ericsson acquire MP3 licences

The path has been cleared for authorised MP3-enabled phones after both Nokia and SonyEricsson acquired licences to use MP3 music technology under a Thomson/Fraunhofer patent.

Under the licence agreement, managed by Thomson, Nokia and SonyEricsson will pay a base rate of E0.64 (USD0.75) per hardware decoder per unit, with a minimum figure of E13,000 paid to Thomson each year.

Thomson said it expected the number of devices capable of playing MP3s could rise by as much as 50 per cent over the next six months. “These licences will allow for widespread implementation of MP3 technology in cell phone products manufactured by Nokia and SonyEricsson,” said Henri Linde, vice president of new business for the Patent and Licensing unit of Thomson, in a statement. “The licences further underscore the continuing expansion of MP3 technology throughout the burgeoning cell phone marketplace.”