Microsoft deal places restrictions on Nokia brand name usage

Part of the deal by Nokia to sell its mobile phone business to Microsoft would also see it restricted in how it uses the Nokia brand name in the future.

As part of the deal, Nokia is granting Microsoft a 10-year licence to use the Nokia brand name "on current and subsequently developed Mobile Phones based on the Series 30 and Series 40 operating systems."

Nokia retains ownership of the brand name in a move that mirrors the deal IBM struck when it sold its computer division to China’s Lenovo in 2005, although Lenovo stopped using the IBM brand after just three years.

However, as part of the deal with Microsoft, Nokia will also be restricted from licensing the Nokia brand for use in connection with mobile device sales for 30 months and from using the Nokia brand on Nokia’s own mobile devices until December 31, 2015.

The transaction with Microsoft is expected to be completed in the first quarter of next year.