In a recent development, Finnish multinational telecommunications company Nokia Oyj (HE:NOKIA) has launched lawsuits against Amazon.com Inc (NASDAQ:AMZN). and HP Inc (NYSE:HPQ). in multiple international jurisdictions. The disputes concern the unauthorized use of Nokia's video-related technologies in streaming devices and services offered by these companies. This move comes after years of unsuccessful negotiations aimed at reaching patent licensing agreements.
Arvin Patel, Nokia's Chief Licensing Officer, has stated that litigation was the only option left, as both Amazon and HP have significantly profited from Nokia's research in mobile telephony without adhering to the rules followed by other companies. This legal action is taking place against the backdrop of the European Commission's efforts to minimize such conflicts and stimulate innovation in the tech industry.
While these legal battles are underway, Nokia has silently entered into a licensing agreement with Apple Inc (NASDAQ:AAPL). The details of this agreement, however, have not been disclosed to the public.
InvestingPro Insights
As the legal battles unfold, it's worth considering the financial health and market position of the companies involved. According to InvestingPro, Amazon, a prominent player in the broadband retail industry, has seen a large price uptick over the last six months. The company's net income is expected to grow this year, with 20 analysts revising their earnings upwards for the upcoming period. However, it's important to note that Amazon operates with a moderate level of debt, which has increased over consecutive years.
InvestingPro's real-time data highlights Amazon's market cap of $1370.0B USD and a P/E ratio of 67.95, indicating a high earnings multiple. Over the last twelve months as of Q3 2023, Amazon reported revenue growth of 10.32% and a gross profit margin of 46.24%.
On the other hand, HP, a significant player in the Technology Hardware, Storage and peripherals industry, is expected to see net income growth this year. Despite some short-term obligations exceeding liquid assets, strong earnings should allow management to continue dividend payments.
InvestingPro data reveals a market cap of $19.72B USD for HP, along with a P/E ratio of 18.44. The company reported a revenue growth of 5.99% and a gross profit margin of 34.59% for the last twelve months as of Q3 2023.
These InvestingPro Tips and data points provide a glimpse into the financial standing of both companies. For a deeper dive into these metrics and access to additional tips, consider exploring the InvestingPro platform.
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