Apple will pay Nokia $500 million annually for licensed patents

I told you yesterday that Apple he graduated from Nokia a series of patents for technologies used in iDevices, but then I didn't know details about the amounts that will be paid by Apple. In the meantime it turned out that Apple he will pay to the Nokia company $608 million now and will pay another 1% of the revenues generated by the sales of iPhone terminals recorded in each fiscal quarter. Theoretically, Apple should pay around $138 million per semester, i.e. $550 million annually if it continued to sell at least as many iPhone terminals as it has until now. Of course, sales may increase or decrease and these amounts will change accordingly.

Deutsche Bank analyst Kai Korschelt said in a research note that Nokia is likely to get a 420 million euro payment in the second quarter. That sum, which translates to $608 million, assumes a 1 percent royalty rate on all 110 million iPhones sold up until the first quarter at an average selling price of $550 million.

For Apple, this amount represents around 2% of the annual profit, but for Nokia, the payments made by Apple will count enormously considering that now the Finnish company is in a very difficult situation. By licensing these patents, Apple got rid of a series of legal problems and can focus on the quiet development of iOS/iDevices using without problems the same technologies or maybe even new ones licensed from Nokia.

Given that Android is in many ways a rip-off of Apple's operating software, Android-based devices are highly likely to infringe on largely the same Nokia patents that Apple now felt forced to pay for.
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This is a sweet defeat for Apple because its competitors — especially those building Android-based devices — will also have to pay Nokia, and most if not all of them will likely have to pay more on a per-unit basis because they don't bring as much intellectual property to the table as Apple definitely did.

For the manufacturers of Android terminals there may be hard times in the future considering that Apple he graduated already several patents, gave importance and recognition to the technologies developed by Nokia, technologies that probably many manufacturers use in their own terminals.