Cloud // Software as a Service
News
8/29/2008
11:14 AM
50%
50%

Zi Renews Nokia Contract

The multiyear contract to provide its text products to Nokia calls for a 100% increase in first year revenue over the existing contract, the company says.

Fighting a hostile takeover bid, Zi Corp. helped its cause by reporting that it has renewed its contract with Nokia to continue to provide its text products to Nokia. Zi has been resisting a takeover bid by Nuance.

Zi said the multiyear licensing agreement with Nokia covers deployment of its eZiType and eZiText products and that the new contract calls for a 100% increase in first year revenue over Zi's existing contract with Nokia.

"This is a banner day for our entire organization," said Milos Djokovic, Zi's president and CEO, in a statement. "Nokia is the world's No. 1 manufacturer of mobile devices, with an estimated 40% share of global device market."

Nuance launched a surprise bid for Zi earlier this month, hoping that its $40 million offer would be accepted because the offer was more than double the price of Zi's stock before the offer was tendered. Zi, however, rejected the offer.

Responding to the rejection, Nuance said it was "perplexed" that its offer was turned down and then later instituted patent infringement litigation against Zi. Nuance charged that Zi's eZiText and Zi Qix products infringed patents previously held by Tegic Communications, which was acquired by Nuance last year. Zi has denied infringing the patents, which are entited "reduced keyboard disambiguating system."

Zi also recently reported it has secured a contract extension with Lenovo Mobile to 2011 and a contract to use its eZiText application in some Hewlett-Packard LaserJet multifunction printers.

Comment  | 
Print  | 
More Insights
8 Steps to Modern Service Management
8 Steps to Modern Service Management
ITSM as we know it is dead. SaaS helped kill it, and CIOs should be thankful. Hereís what comes next.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.