Finnish communications corporation Nokia is known for having legal battles with Cupertino based, Apple. Back in 2010, Nokia filed a patent infringement lawsuit against Apple with regards to how the latter incorporated data transmission and antenna technologies into their products. Nokia asked to block the shipping of Apple products that allegedly violated the patent. Earlier this year, the court ruled in favor of Apple after seeing no evidence of patent infringement. But the legal battle didn't end there.
After only a few days after court's decision, Nokia filed another patent infringement suit citing that Apple is copying key innovations of Nokia in order to incorporate new features into the latter's products. But it seems that this time, Nokia took the upper hand.
Kai Korschelt, a Deutsche Bank analyst, said that according to his estimates, as a lump sum payment for patent litigation settlement, Nokia will receive roughly $608 million from Apple. In exchange, Nokia agreed to drop all current charges and enter into licensing deal that covers each of the companies' patents.
Nokia just issued a press release that indicates that the two companies have come to a settlement. According to Nokia CEO Stephen Elop:
We are very pleased to have Apple join the growing number of Nokia licensees. This settlement demonstrates Nokia’s industry-leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.
In addition to the $600 million lump sum payment up-front, Apple will most likely have to send Nokia revenue payments ($137.6 million per quarter) that will cover iPhone's future sales as part of the licensing fees.
Nokia is reported to have invested 43 billion euros in research and development which enabled them to build a very strong IP portfolio. This particular news just proves just how you can't just ignore intellectual properties and patent laws.Contact Us for News Tips, Corrections and Feedback