Nokia wins long-running patent dispute with Apple

Remember that long running saga between Apple and Nokia, with the latter suing Apple, only to be counter-sued and both companies asking for a cessation of importing of the infringing devices into the USA by appealing to the ITC? Well it seems that the two feuding companies have finally struck a deal involving a lump-sum payable to Nokia and ongoing royalty payments as part of the settlement.

As is normally the case, the exact amounts involved have not been disclosed but one would be silly not to consider the possible financial implications both for this quarter and a few others. Especially in light of the whole marketshare and Symbian EOL matters.

Consider, If Nokia is paid 1-2.5 % of the selling price of every iDevice sold to this point we’re looking at easily $6-15 per device multiplied by ~100 Million. A rather hefty sum with Nokia getting a nice little cut out of Apple’s future (and extremely likely) successes. Full Press release below:

Apple payments to Nokia settle all litigation and have positive financial impact

Nokia Corporation
Stock exchange release
June 14, 2011 at 08:05 (CET +1)

Espoo, Finland – Nokia announced that it has signed a patent license agreement with Apple. The agreement will result in settlement of all patent litigation between the companies, including the withdrawal by Nokia and Apple of their respective complaints to the US International Trade Commission.

The financial structure of the agreement consists of a one-time payment payable by Apple and on-going royalties to be paid by Apple to Nokia for the term of the agreement.  The specific terms of the contract are confidential.

“We are very pleased to have Apple join the growing number of Nokia licensees,” said Stephen Elop, president and chief executive officer of Nokia. “This settlement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.”

During the last two decades, Nokia has invested approximately EUR 43 billion in research and development and built one of the wireless industry’s strongest and broadest IPR portfolios, with over 10,000 patent families.  Nokia is a world leader in the development of handheld device and mobile communications technologies, which is also demonstrated by Nokia’s strong patent position.

This agreement is expected to have a positive financial impact on Nokia’s recently revised outlook for the second quarter 2011 of around break-even non-IFRS operating margin for Devices & Services.

 

Via Engadget

Tags: featured, ITC, Nokia, patent, patent troll

Category: Nokia