Nokia and Apple sign patent license agreement, ending their second patent dispute

Nokia and Apple sign patent license agreement, ending their second patent dispute
Apple and Nokia have a long history of law disputes. Between 2009 and 2011 the two companies were at each other's throats, since Nokia sued Apple for patent infringement. The two-year battle ended with a settlement, which awarded Nokia a portion of the money for every iPhone sold to that date.

Back in December of last year, Apple filed antitrust lawsuits against some companies acting on Nokia's behalf, and the Finnish company answered with its own lawsuit directly against Apple. One one side, we had Apple, claiming that it has the right to use some Nokia patents, but the latter transferred the same patents to third-party patent assertion entities, in order to squeeze some cash from their tech. According to Tim Cook and company, this was “anticompetitive and abusive”. On the other hand, Nokia claimed that Cupertino company still owes it payments for patents used in Apple products.

Today, however, the two companies released a statement, saying that all litigation was settled, and they both agreed on a multi-year patent license. Additionally, Nokia will be providing “certain network infrastructure products and services” to Apple under a new business collaboration agreement between the companies. Apple, on the other hand, will resume the sale of Nokia health products, formerly known as Withings, in its retail and online stores.

Apple's COO, Jeff Williams also commented on the settlement. “We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia,” he said.

Details of the agreement are kept confidential, but the statement confirms that Nokia will receive an up-front cash payment from Apple, followed by additional revenue during the term of the agreement. The value of said agreement will be reflected as patent licensing net sales in Nokia Technology, as well as net sales in other Nokia business groups. Nokia confirmed it will continue to disclose its patent licensing revenue in its quarterly announcements, and expects the first money from the agreement to appear in its Q2 2017 report, so we might get some numbers then.

In the meantime, we're sure both companies are glad that the second patent dispute between them has been brought to an end much faster than the first.


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