Apple Pays $2 billion to Nokia for Patent Infringement
Apple (AAPL) paid Nokia (NOK) $2B in cash as part of a deal to settle a patent disputes in which Nokia claimed Apple was infringing on 32 technology patents, 9to5Mac reports, citing a Nokia conference call.
In the call, Nokia said, “We got a substantial upfront cash payment of EUR$1.7B from Apple, strengthening further our cash position.
As said earlier, our plans is to provide more details on the intended use of cash in conjunction with our Q3 earnings.
Third, instead of a simple patent licensing agreement, we have agreed on a more extensive business collaboration with Apple, providing potential for a meaningful uplift in our IP Routing, Optical Networks and Digital Health business units over time.
Hence, the value of the agreement will be reflected partly as patent licensing net sales in Nokia Technologies, and partly as net sales in other Nokia business groups.”
Nokia first filed the lawsuit claiming Apple was infringing on its technology patents last December, which Apple initially responded to with a lawsuit of its own.
At the center of the dispute were 32 patents involving the iPhone 3GS and later (as well as other Apple products) which Apple claimed Nokia intentionally left out of a 2011 licensing agreement. Back in May, Apple and Nokia announced that the two companies had reached a resolution to the dispute and would work together by expanding their relationship.
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