On Tuesday, Apple and Nokia have announced that they have settled a legal dispute over the use of patents and other intellectual property owned by the Finnish mobile maker. According to a press release, both companies have agreed to undergo a multi-year patent license deal.
Maria Varsellona, Chief Legal Officer at Nokia, and who is also responsible for the company’s patent licensing business, said in a statement, “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.”
The New York Times the dispute started when Apple publicly declared that it will no longer pay Nokia for its patents, and had accused the company of extortion. Many of the patents were built into the Cupertino, California-based tech company’s suite of products. Nokia, as a response, filed lawsuits in 11 countries, including the US and Germany, insisting that Apple should pay for the use of its patents used on the latter’s smartphones, tablets and other devices.
Both companies said that the multi-year patent license deal will have Apple paying royalties starting the second quarter of 2017. There was no mention of any financial terms in the said deal, but it has been stipulated that Nokia will be receiving a “significant” cash payment upfront and additional revenues from Apple. Analysts told Reuters that the deal valuation will most likely be higher than the previous deal struck by both parties.
