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Apple paid $2 Billion to Nokia as Part of Law suit

 

Byte: After a fight, Nokia and Apple settled a patent lawsuit in May. But both didn’t comment on the value of the settlement

Nokia has confirmed that it received a cash payment of 1.97 Euro ($2 billion) from Tech giant company Apple as part of the patent licensing lawsuit.

“The “substantial” payment helped strengthen Nokia’s cash position for the second quarter of fiscal 2017” – Nokia CFO Kristian Pullola

This seems to be a lot of money but Nokia won’t get $2 Billion every year this was non-recurring catch-up revenue. Nokia hasn’t said what it plans to do with all this cash

Nokia sued Apple for 32 patent infringement claiming that it has used their patents from iPhone 3g devices. Those patents where related to displays, display, user interface, software, antenna, chipsets, and video coding.

First, it looked like a big fight when Apple removed Withing’s (Product of Nokia) products from its stores. After that, they quickly signed an agreement and you can find Withing’s Products again in Apple Stores

Instead of signing a usual patent licensing deal, Apple and Nokia want to go a step further the two companies settled all litigation related to the dispute and agreed to a multi-year patent license

Under that agreement, Apple will help Nokia on new technologies and research and development. It’s going to be interesting to look at Nokia’s upcoming quarterly earnings release to figure out how much Apple is paying for this agreement.

Nokia had expected to spend approximately €100 million annually on litigation fees related to the Apple dispute

As they have already in a war of Android smartphones Nokia must be quite happy with this new revenue stream

 

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