Nokia says Apple to pay royalties, ending patent disputes

June 14, 2011 by Aira-Katariina Vehaskari

Nokia said Tuesday Apple had agreed to pay royalties for use of Nokia technology in its devices

Enlarge

The world's leading mobile phone maker Nokia said Tuesday that Apple had agreed to pay royalties for use of Nokia technology in its devices, ending all of their 46 ongoing patent disputes.

The world's leading mobile phone maker Nokia said Tuesday its competitor Apple had agreed to pay royalties for using Nokia technology in its devices, ending all of their ongoing patent disputes.

"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," Nokia said in a statement.

The Finnish mobile phone giant said details of the contract were confidential.

In a brief statement, Apple said "Apple and Nokia have agreed to drop all of our current lawsuits and enter into a license covering some of each others' patents, but not the majority of the innovations that make the iPhone unique.

"We're glad to put this behind us and get back to focusing on our respective businesses," Apple said.

The deal constitutes a massive victory for Nokia and brings to an end years of tit-for-tat suits that have seen Nokia file 46 complaints against Apple, which has hit back with numerous countersuits against the Finnish company.

Nokia said both companies had now agreed to withdraw all complaints they had filed with the US International Trade Commission.

"We are very pleased to have Apple join the growing number of Nokia licensees... This settlement demonstrates Nokia's industry leading patent portfolio," Nokia chief executive Stephen Elop said in the statement.

The Finnish company, which has been struggling to maintain its position as global market leader, also said the deal should have "a positive financial impact" on its second-quarter performance.

Just two weeks ago, Nokia warned that its sales for the quarter would be far worse than previously expected and that it could no longer give a full-year forecast, news which sent its share price to its lowest level since early 1998.

Nordea Bank analyst Sami Sarkamies said the one-time payment by Apple will have a powerful impact on Nokia's second quarter, and that the California tech giant would become one of Nokia's most significant patent clients.

"I believe that with the one-time payment we're talking about hundreds of millions of euros, because Apple hasn't paid anything for any of its iPhones that it's sold (with Nokia technology)," Sarkamies told AFP, adding however that future royalty payments would surely be smaller and less visible in quarterly results.

Sarkamies said he was sure the deal also included concessions to Apple for use of its non-essential patents, such as touchscreen technology, but that these payments were likely considerably smaller than what Apple would have to pay to use Nokia's essential patents.

Ending the disputes, which the companies had been fighting simultaneously in US and European courts, should boost morale at Nokia, which is struggling to reverse plummeting market share at the hands of Chinese manufacturers and smartphone rivals Apple and Google.

In February, Elop announced a radical last-ditch effort to turn around the ailing industry giant by phasing out its own smartphone platforms in favour of a partnership with Microsoft's operating system.

This was accompanied by complete corporate re-structuring, thousands of job cuts globally, and multiple credit rating downgrades.

"This is the first good news for Nokia in a very, very long time," Sarkamies said, adding that the agreement should also strengthen Nokia's position in patent rows with other companies in an industry he described as "a tangle of patent conflicts."

(c) 2011 AFP


Rank 5 /5 (1 vote)
Relevant PhysicsForums posts

More news stories

Browser wars flare in mobile space

The browser wars are heating up again, but this time the fight is for dominance of the mobile Internet.

Technology / Software

created 3 hours ago | popularity 5 / 5 (1) | comments 2

Probability of contamination from severe nuclear reactor accidents is higher than expected: study

Catastrophic nuclear accidents such as the core meltdowns in Chernobyl and Fukushima are more likely to happen than previously assumed. Based on the operating hours of all civil nuclear reactors and the number ...

Technology / Energy & Green Tech

created May 22, 2012 | popularity 3.6 / 5 (21) | comments 56 | with audio podcast

SpotterRF debuts Radar Backpack Kit (w/ Video)

(Phys.org) -- SpotterRF has announced a special radar backpack kit designed to enhance situational awareness for soldiers on the ground. The company says its special radar is designed for warfighters as part ...

Technology / Hi Tech & Innovation

created May 26, 2012 | popularity 5 / 5 (5) | comments 12 | with audio podcast report

HyperSolar shows dirty water no barrier to power world

(Phys.org) -- The Santa Barbara, California, company, HyperSolar, is set to transparently share the ups and downs of its research experiences toward the company’s ultimate vision, successfully producing ...

Technology / Energy & Green Tech

created May 24, 2012 | popularity 4.8 / 5 (15) | comments 17 | with audio podcast report

Tesla to launch electric sedan in US on June 22

Tesla Motors said Tuesday it would begin deliveries of "the world's first premium electric sedan" on June 22, slightly ahead of schedule.

Technology / Energy & Green Tech

created May 22, 2012 | popularity 4.5 / 5 (11) | comments 18


Nvidia trumpets Tegra 3 phone design wins for 2012

(Phys.org) -- Nvidia’s competitive war paint has a name, Tegra 3. On the heels of Nvidia announcements about lowering costs of its Tegra 3 processors and Nvidia-enabled tablets running Android Ice Cream ...

Scientist: Evolution debate will soon be history

(AP) -- Richard Leakey predicts skepticism over evolution will soon be history. Not that the avowed atheist has any doubts himself.

Dell tablet leak: 10.1-inch display, two-battery choice

(Phys.org) -- Headline after headline talks about vendors’ tablets in the wings as likely number-one contenders for the iPad. Such claims have justifiably been taken with a grain of salt, considering ...

Keep food safety in mind this memorial day weekend

(HealthDay) -- Picnics, parades and cookouts are as much a part of Memorial Day weekend as tributes to the United States' war veterans.

Family history of Alzheimer's affects functional connectivity

(HealthDay) -- Cognitively normal individuals with a family history of late-onset Alzheimer's disease (AD) may display lower resting state functional connectivity in the default mode network (DMN) of the brain, ...

Social welfare cuts ultimately come with heavy price, researchers say

(Phys.org) -- Slashing government funding for Medicaid, food stamps and other programs that serve the poor – while politically popular with some lawmakers and many conservatives – may do more harm ...