Nokia's Patent Setback in China Overshadows a Week of Deal-Making and a 69% YTD Rally

China's top court upheld rulings invalidating several Nokia patent claims, a blow to licensing, as Nokia closed its FWA sale to Inseego and pushed into satellites.

Nokia's licensing engine has hit a legal roadblock in one of its most important markets. China's Supreme People's Court has upheld lower-instance rulings in a patent dispute, leaving the invalidation of several of the Finnish group's patent claims intact, according to media reports. The outcome stings because patent licensing has long been one of Nokia's most dependable profit pillars.

The ruling landed as the company kept up a brisk pace on the operational front, closing out portfolio moves and pushing deeper into satellite communications.

Inseego Takes Over FWA Business

Inseego has completed its acquisition of Nokia Solutions and Networks Oy's fixed wireless access (FWA) business, a transaction that closed on Thursday. As consideration, Nokia received 1,163,693 ordinary shares plus warrants for a further 521,139 shares, along with the assumption of certain liabilities. Separately, Nokia made a $10 million investment in Inseego and agreed to pay another $10 million by October 15, 2026 to support development spending.

Satellite Broadband for Government Customers

Beyond terrestrial networks, Nokia is reaching for the skies. Teaming up with ICEYE, the company announced a partnership to build secure and sovereign broadband satellite communications systems in low Earth orbit, aimed squarely at government, defense and border-security customers as well as disaster-response agencies. The first satellite launches under the joint project are targeted for 2028.

Zain KSA Rolls Out Deepfield Nationwide

Closer to home, Nokia's software push in the Middle East is gathering pace. On September 29, the company said Saudi operator Zain KSA had deployed its Deepfield Cloud Intelligence platform across the country, covering more than 100 cities. The traffic-monitoring and analytics system forms part of Nokia's broader effort to generate additional revenue from mobile and fixed-line carriers through specialized software tools and automated security architectures.

Jefferies Sticks With Buy Rating

Analyst support arrived late last month. Janardan Menon of Jefferies reaffirmed his buy recommendation on Nokia on September 24 with a price target of EUR 13.80, according to media reports. Menon pointed to the company's market position in indium phosphide chip integration and expected growth in optical connections between data centers as the basis for his call.

Shares Slip as US Data Lifts Nasdaq

On the trading floor, the stock has been pulled in two directions. Nokia shares rose 2.2% on Friday to close at EUR 9.47, with the catalyst coming not from company news but from across the Atlantic: a fresh US jobs report eased inflation concerns and gave equity markets broad support. The tech-heavy Nasdaq climbed 1.2% that day, per AP, lifting Nokia's New York-listed depositary receipts alongside it. Early this week, sentiment cooled again, with the stock easing 0.2% to EUR 9.45.

Those daily swings pale next to the bigger picture. Year to date, Nokia shares are up 69%, a striking recovery run that has weathered the recent legal setback in China.

Investors now have a firm date circled: October 22, when Nokia publishes its third-quarter and nine-month results.