Cell mp3 nokia phone player

Nokia, Sony Ericsson Strike Deal For MP3 Mobiles

Thomson licensed its MP3 music technology to both Nokia and SonyEricsson on Wednesday afternoon, setting the stage for licensed, MP3-enabled cell phones.

Thomson, which controls the licensing for the combined Fraunhofer/Thomson MP3 patent portfolio, said the deal would expand upon the estimated 100 million devices which can play MP3 players today. Thomsaid it expects that number to increase by 50 percent by the end of this year.

Thomson's royalty rates for hardware manufacturers call for both Nokia and Sony Ericsson to pay at least $0.75 per hardware decoder per unit, with a minimum of $15,000 per year paid to Thomson. The royalties can either be paid by the OEM or the codec manufacturer.

"These licenses will allow for widespread implementation of mp3 technology in cell phone products manufactured by Nokia and Sony Ericsson," said Henri Linde, vice president of new business for the Patent and Licensing unit of Thomson, in a statement. "The licenses further underscore the continuing expansion of mp3 technology throughout the burgeoning cell phone marketplace."

Previously, Sony developed the HBM-30, a standalone MP3 player that also doubled as a hands-free accessory for its cellular handsets.