Apple and Nokia settle all patent disputes, Apple to pay on-going royalties

Nokia has announced that Nokia and Apple have finally settled all of their long-running patent disputes relating to mobile phone technology. As part of the patent agreement between Apple and Nokia, Apple has provided Nokia with a one-time payment and will continue to pay Nokia royalties for use of their patents. Nokia CEO Stephen Elop:

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.

“The patents in question relate to technologies for enhanced speech and data transmission, using positioning data in applications and innovations in antenna configurations that improve performance and save space, allowing smaller and more compact devices”, according to Nokia’s May 2010 lawsuit filing.

Nokia filed yet another patent-related lawsuit against Apple, in March 2011, claiming that “Nokia’s pioneering innovations are now being used by Apple to create key features in its products in the areas of multi-tasking operating systems, data synchronization, positioning, call quality and the use of Bluetooth accessories.”

That second lawsuit came only days after the ITC ruled in Apple’s favor regarding the patents from the initial lawsuit filing.

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.