Deutsche Bank analyst Kai Korschelt on Tuesday estimated that Nokia stands to make a pretty penny off of royalty payments from Apple moving forward. Nokia announced early on Tuesday that it had reached an agreement with Apple regarding a series of patent disputes filed by each company over the past few years. Based on recent settlements tied to similar cases in the industry, Korschelt estimates that Apple will give Nokia a $608 million lump-sum payment up front. Following that initial payment, Apple will like pay Nokia a 1% royalty on all iPhones sold each quarter as a licensing fee. At Apple’s current pace — which has increased steadily rapidly since the iPhone first launched — that works out to approximately $138 million each quarter, or more than $550 million annually. More →
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. More →
According to a report by Citi analyst Walter Pritchard, Microsoft may be making more money off Google’s Android operating system than it makes off its own Windows Phone platform — five times more, in fact. Pritchard states that as a result of a patent settlement, HTC is required to pay Microsoft $5 for every Android phone sold. Analyst Horace Dediu estimates that HTC has sold 30 million Android smartphones to date, which adds up to $150 million in the bank for Microsoft. Dediu notes that Microsoft has reported Windows Phone sales totaling 2 million licenses to date, and he estimates the company’s license fee to be $15 for a total of just $30 million. Pritchart notes that Microsoft is currently suing other Android phone makers for infringements on the company’s intellectual property, and is seeking between $7.50 and $12.50 per device sold. As much money as the company is making on sales of HTC’s Android phones, it’s easy to see why Microsoft is pursuing other cell phone makers with similar suits. More →
According to a report filed by The Wall Street Journal, peer-to-peer networking site LimeWire and several major record labels may be working on an out-of-court settlement in a copyright infringement case from 2006. “Lawyers for several major record labels have held at least three settlement conferences with representatives of a file-sharing service that they sued for copyright infringement, according to a federal court docket entry, indicating that the two sides may reach an agreement on a financial penalty instead of waiting for a jury award,” reads the report. LimeWire was found guilty of allowing users to upload and share unlicensed, copyrighted materials over its network. Arista Records, Warner Music Group, Universal Music Group, and EMI Group are all named plaintiffs — LimeWire and its founder, Mark Gorton, are named as defendants. Representatives from the two camps did not respond to the WSJ’s request for comment. More →
Sprint, which owns the majority stake of Clearwire, has agreed to pay the company at least $1 billion through 2012 for fees associated with the use of its 4G WiMAX network. Sprint and Clearwire entered arbitration late last year after Sprint argued that it shouldn’t have to pay a fee for 4G handsets that exist where Clearwire’s 4G WiMAX network isn’t available. Sprint charges its customers an extra $10 monthly for the option to run on 4G networks and Clearwire charges an estimated $4.46 per 4G-handset owner. According to the Associated Press, Sprint will pay Clearwire $300 million this year and $550 million in 2012. Sprint will also reportedly pay an additional $175 million in a prepaid agreement to use the 4G WiMAX network this year and in the future. Sprint’s CEO, Dan Hesse, told the AP that his company is pleased to have reached a settlement. More →
In a joint statement issued on Tuesday, Motorola Solutions and Huawei have announced an agreement to settle all pending litigation between the two companies. Motorola filed a suit against Huawei in July 2010 alleging theft of trade secrets, and Huawei responded in January of this year with a suit alleging Motorola was illegally transferring Huawei’s intellectual property to Nokia Siemens Networks (NSN). Motorola solutions has now agreed to withdraw all claims related to Motorola v. Lemko, et al., and Huawei will withdraw its claims against Motorola Solutions and NSN. In addition, Huawei has agreed to allow Motorola to transfer intellectual property and other agreements with Huawei to NSN for an undisclosed sum. “We regret that these disputes have occurred between our two companies,” Motorola Solutions CEO Greg Brown said in a statement. “Motorola Solutions values the long-standing relationship we have had with Huawei. After reviewing the facts, we decided to resolve these matters and return to our traditional relationship of confidence and trust. I am pleased that we can again focus on having a cooperative and productive relationship.” Hit the jump for the full pres release. More →
Following a very, very rocky start for Google’s latest social networking effort, Google Buzz, the Internet giant has settled a class action lawsuit related to the service. When Buzz launched earlier this year, Google found itself at the center of a media frenzy. The company decided it would forgo an opt-in process and share users’ locations with each Google account holder in their address books by default. The decision turned out to be a PR nightmare — and now it carries a financial burden with it as well. As a result of a class action settlement, Google has agreed to put in place an $8.5 million fund dedicated to “promoting privacy education on the web,” and it is now in the process of informing its users. Hit the break for the email Google is currently sending to all account holders. More →
Well, we might as well close the loop on this one. Last month, we told you how former HP CEO Mark Hurd was ousted by HP, complimented by Larry Ellison, and then hired by Oracle. We also told you how the Oracle hiring prompted a lawsuit from Mr. Hurd’s former employer. Now, the New York Times is reporting that the two sides have reached an agreement on the embattled executive’s future. In exchange for dropping the lawsuit, Hurd will forfeit nearly half of the $28 million compensation package he was given by HP. The former HP chief, and now Oracle President, will give up 330,177 shares of performance-based restricted stock and 15,853 shares of time-base restricted stock (that’s about $13.34 million using today’s stock price). Oracle and HP, who do quite a bit of business together, did their best to reassure stock holders that the two companies are on the mend. “Oracle and HP will continue to build and expand a partnership that has already lasted for over 25 years,” said Oracle CEO Larry Ellison. “HP and Oracle have been important partners for more than 20 years and are committed to working together to provide exceptional products and service to our customers,” said Cathie Lesjak, the CFO and interim CEO of HP. So ends this chapter of the Mark Hurd Chronicles. More →
A California appeals court has ruled that Verizon Wireless is to pay some 175,000 customers current and former customers $21 million as a settlement in a class action lawsuit over early termination fees. The class action suit was filed in California on the behalf of customers who were upset that Verizon asked they pay a flat ETF of $175 regardless of how many months were left on their contract. Each customer is expected to receive $87.50 as a result of the ruling. Too bad history is bound to repeat itself now that Verizon’s ETF for “advanced devices” (i.e. smartphones) is set at $350. More →
MagicJack, creator and distributor of the popular dongle-based PC VoIP solution, has some problems with its credibility. Back in 2008, BoingBoing revealed some of the companies disingenuous business practices which include but are not limited to: a fake visitor counter on its website that increased automatically on its own, a bogus MagicJack detection page that claims a functioning MagicJack device is connected when none is present, and serious problems with its EULA that allows the service to screen calls and send targeted ads to users while also forcing users to waive their rights to sue in court. Rather than acknowledge its culpability and change its practices, MagicJack dragged BoingBoing into court with a charge of defamation. When it was shown that the BoingBoing article was not defaming, the case was dismissed and MagicJack was ordered to pay $50,000 in legal costs to BoingBoing. Rather than accept the penalty and move on, MagicJack CEO Dan Borislow blamed the incompetence of his lawyers for the loss and tried to buy BoingBoing’s silence by offering the online news site a settlement if the contents of the lawsuit and settlement were kept private. BoingBoing refused to be silenced and now the lawsuit, its outcome, and MagicJack’s futile attempt to cover its tracks are exposed for the world to see.
If you purchased a first-generation iPod nano in the US, it looks like you might have some cash coming your way. As the result of a class action suit, a court recently ruled that Apple’s early 1G iPod nano (no protective coating, sold until December 2005) was a tad too prone to scratching and has decided that customers are entitled to some compensation. Apple has been ordered to cough up $22.5 million and the claim process for those affected has already begun. As is always the scam, the lawyers will retain the lion’s share of the settlement – around $4.7 million – and the leftovers are to be spread amongst affected consumers; $15 each for those who purchased an uncoated 1G nano that came with a slip cover and $25 each for those whose uncoated nanos were sans-slip cover. Claimants have until June 10, 2009 to file and compensation for valid claims should be received sometime, ohhhh, within the next 200 years we’d say. Hit the read link to see if you qualify for a piece of the action.
After making all kinds of efforts to save money and cut back on expenses, a recent settlement for Dell is sure to set those efforts back just a little bit. The computer giant is going to have to pay $3.35 million as part of a settlement in 34 states for misleading consumers about financing and warranties. Apparently, many people who purchased Dell computers were charged higher interest rates than promised (for those who financed), did not receive rebates and were lied to about warranties. So, $1.5 million will be paid as restitution for those rip-offs and consumers will have 90 days to submit a claim. The remaining $1.85 million is going to cover, you guessed it, legal fees. The moral of the story is it doesn’t pay to be shady and we hope that other companies take this as a wake-up call because it doesn’t help business or consumers. It does however, help lawyers.
Remember all the hoopla about Sprint’s ETF and the lawsuit it was facing because of their policy? Well, as a result of the proposed settlement that is likely to move forward, it looks like anyone who started and subsequently ended a contract with Sprint between July 1999 and December 2008 is looking at some cash. All you have to do is show proof that you canceled during that time window and paid an ETF, and you’ll be getting $90 for your troubles. Of course, $90 is probably nowhere near what you had to pay to get out of contract and it’s hardly a consolation for all the heartache you had to go through, but it’s better than nothing. In the event you stuck with Sprint during that time period in order to avoid the ETF, you get $35. All you have to do now is deal with the paperwork and process of going through all this stuff and that green will find its way into your pockets.