For years, Nokia and Apple have been fighting in the courts, accusing each other of infringing some patents, but finally Apple gave in and will license some technologies from Nokia. Today Nokia published a press release announcing that Apple will pay a certain fixed sum of money once plus other annual sums for the use of technologies patented by Nokia. No figures were presented for these amounts, but it is more than likely high costs for Apple and revenues that Nokia needs very much at the moment.
Those from Nokia argued in 2010 that Apple infringed patents regarding technologies for: data transmission and improving the quality of phone calls, the use of GPS positioning systems in applications and the use of methods to improve signal quality and reduce the occupied space of the internal components. In 2011, Nokia filed a new action in court accusing Apple of infringing some patents for: certain elements of the multitasking system in iOS, methods of improving GPS positioning, methods of improving call quality and compatibility with accessories Bluetooth.
It is possible that some of the accusations brought by Nokia are true since Apple has agreed to pay for the use of the technologies, but there is also the possibility that Apple has also licensed some other new technologies.
Espoo, Finland - Nokia announced that it has signed a patent license agreement with Apple. The agreement will result in the 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 devices 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.
