On Tuesday Nokia announced that it has reached an agreement with Apple that “will result in settlement of all patent litigation between the companies,” and that both firms will withdraw all complaints against one another from the U.S. International Trade Commission. The two firms have been fighting over patents for the past few years, filing counter suit after counter suit. The battle was thought to have had some closure when the U.S. ITC ruled that Apple did not infringe on Nokia’s patents, but then last month the government group said it would continue its investigation. Nokia said Tuesday that the agreement “consists of a one-time payment payable by Apple,” and that the Cupertino-based company will continue to pay royalties to Nokia for the remainder of the agreement. “We are very pleased to have Apple join the growing number of Nokia licensees,” said Stephen Elop, Nokia’s president and CEO. “This settlement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.” Nokia’s full press release can be found after the break.
Nokia enters into patent license agreement with ApplePublished June 14, 2011
Apple payments to Nokia settle all litigation and have positive financial impact
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.