Nokia and Apple have announced plans to settle their patent dispute and have agreed to a multi-year patent license deal
Nokia and Apple have announced plans to settle their patent dispute and have agreed to a multi-year patent license deal. The two companies have also signed a business collaboration agreement where Nokia will provide Apple with certain network infrastructure products and services.
The announcement comes on the back of legal action initiated by both the companies in December after the expiry of a previous patent license. Nokia accused Apple of violating technology patents, while Apple blamed Nokia for overcharging for patent use. Apple even discontinued sales of Nokia-owned Withings' digital health product. Under the new agreement, Apple will resume selling Nokia's digital health products at its retail and online stores and both the companies "are exploring future collaboration in digital health initiatives."
Nokia will receive an up-front cash payment from Apple and the Finland-based company believes some of the additional revenues will start reflecting from this quarter. "We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia," Jeff Williams, Apple's chief operating officer said in a statement.
The details of the agreement remain confidential, but Nokia will continue to report the value as part of its patent licensing revenue during the quarterly earnings call. Nokia also intends to provide a comprehensive update of its capital structure optimisation program in conjunction with its third quarter 2017 results.
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