comscore Nokia, Apple call a truce; sign patent license, business cooperation agreement

Nokia, Apple call a truce; sign patent license, business cooperation agreement

Nokia and Apple have buried the hatchett and are now allies over patents.


The long-standing dispute between Nokia and Apple over patents has now ended with the two companies reaching a mutual agreement. Both the parties have decided to continue to license products to each other. While more details of the deal are scarce at the moment, Apple has agreed to provide up front cash payment to Nokia as part of the new agreement. Also Read - Common marketing gimmicks that brands should avoid to exploit consumers

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Apple and Nokia had an agreement since 2011 that allowed Apple to use Nokia’s patents. But in December 2016, the Finnish company accused Apple of infringing upon patent after the agreement expired. With the latest agreement, Apple will now continue using Nokia’s technology for network infrastructure products and services and will also continue the sale of Nokia’s health-related products in Apple Stores. Both the companies are even contemplating working together in the future for other health initiatives. Also Read - Apple in tussle with Russian govt over App Store payment options

Commenting on the agreement, Apple said in a release, “The value of the agreement will be reflected partially as patent licensing net sales in Nokia Technologies and partially as net sales in other Nokia business groups. Nokia will follow its existing practices for disclosing patent licensing revenue in its quarterly announcements and expects that revenues for the agreement will start to be recognized in the second quarter of 2017, including an element of non-recurring catch-up revenue.” ALSO READ: Nokia 3310-lookalike Darago 3310 spotted online, costs just Rs 799

Additionally, Nokia will also share a capital structure optimization program with its 2017 quarter 3 results. This is a meaningful agreement between Nokia and Apple, said Maria Varsellona, Chief Legal Officer at Nokia, responsible for Nokia s patent licensing business. It moves our relationship with Apple from being adversaries in court to business partners working for the benefit of our customers. Jeff Williams, Apple s chief operating officer added, “We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia”.

This agreement will strengthen our collaboration, said Basil Alwan, President of Nokia s IP/Optical Networks business. We look forward to supporting Apple. ALSO READ: iPad Pro 2017 case leaks reveals design details, to sport centered rear microphone, stereo speakers

With patent tussle with Nokia resolved, Apple might now work towards finding a similar agreement with other companies. At the moment, Apple is embroiled in a legal battle with chipset making company Qualcomm. According to recent reports, Qualcomm has sued Apple’s manufacturing partners Foxconn, Pegatron, Wistron, and Compal. The litigation came after Apple stopped payment for royalties for patented technologies used in Apple’s devices including iPhones and iPads. ALSO READ: Apple sues Qualcomm for $1 billion for allegedly charging excessive royalties

That being said, Apple in the past has locked horns with the rival Samsung over the patent issues. The widely covered ‘patent war’ saw Samsung and Apple accusing each other of infringing upon patents. ALSO READ: Apple Inc. v. Samsung Electronics Co.

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  • Published Date: May 23, 2017 2:23 PM IST

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