It looks like the fight between the two tech firms is already over and it didn’t last that long. A patent dispute between Nokia and Apple which started at the end of last year when Cupertino accused Nokia of acting like a patent troll.
The two companies announced earlier today that they have reached an agreement to settle all litigation and legal disputes pertaining to the dispute and have written a multi-year patent license with one another.
Nokia will be receiving an upfront all cash payment that is going to be followed up by further revenues over the term of the agreement. Patent royalities are a very thing in the tech world and the upfront payment was likely to settle any potential legal action as well as covering any royalties the company might have owned. Its suit had covered a swathe of patents, including from NSN and Alcatel-Lucent (following its full acquisition of both), related to technologies including software, video coding, chipsets, display, UI and antenna.
While the value of this agreement has not been publicly released the press release states that under a “business collaboration agreement” Nokia will be providing “certain network infrastructure product and services to Apple”.
In addition Apple will also resume carrying Nokia’s digital health products in its stores both retail and online. Apple had previously removed said products a few days after Nokia filed the law suit.
It also said that due to the up-front cash payment from Apple it will provide a “comprehensive update of its capital structure optimisation program” in conjunction with its Q3 results.
Commenting in a statement, Maria Varsellona, chief legal officer at Nokia, said: “This is a meaningful agreement between Nokia and Apple. It moves our relationship with Apple from being adversaries in court to business partners working for the benefit of our customers.”
“This agreement will strengthen our collaboration,” added Basil Alwan, president of Nokia’s IP/optical networks business, in another statement. “We look forward to supporting Apple.”
In its supporting statement, Jeff Williams, Apple’s chief operating officer, added: “We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia.”
Nokia shared were up about 5% in news of the settlement and patent deal.