Nokia announced that it has signed a patent license agreement with Apple. The agreement will result in settlement of all patent litigation between the companies, including the withdrawal by Nokia and Apple of their respective complaints to the US International Trade Commission.
The financial structure of the agreement consists of a one-time payment payable by Apple and on-going royalties to be paid by Apple to Nokia for the term of the agreement. The specific terms of the contract are confidential.
“We are very pleased to have Apple join the growing number of Nokia licensees,” said Stephen Elop, president and chief executive officer of Nokia, in the press release. “This settlement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.”
Source: Nokia Corporation
Florian Mueller writes for FOSS Patents, “This frees up resources for both Apple and Nokia. Apple is embroiled in litigation with the three leading Android device makers (Motorola, HTC and Samsung). Nokia doesn’t have any litigation worries at the moment, but part of its new strategy is to ratchet up the monetization of its patent portfolio. The fact that Nokia has demonstrated its ability to defeat Apple — after the most bitterly contested patent dispute that this industry has seen to date — is a clear proof of concept. Other companies whom Nokia will ask to pay royalties will have to think very hard whether to pay or pick a fight.”
Mueller writes, “This is also very significant with a view to Android. Given that Android is in many ways a rip-off of Apple’s operating software, Android-based devices are highly likely to infringe on largely the same Nokia patents that Apple now felt forced to pay for.”
“I don’t hold shares in any tech company, but if I were an Apple shareholder, I would probably view this outcome favorably. Nokia emerges victorious, but this is a sweet defeat for Apple because its competitors — especially those building Android-based devices — will also have to pay Nokia, and most if not all of them will likely have to pay more on a per-unit basis because they don’t bring as much intellectual property to the table as Apple definitely did,” Mueller writes. “So from a competitive point of view, I don’t think Apple loses much. On the bottom line its profitability may even benefit from this because Apple’s margins face no greater threat than Android-style commoditization of smartphone technologies.”
Much more in the full article – recommended – here.
Nokia probably dropped it’s extortive pricing and ended up charging fair market value, which is exactly what Apple demanded from the get go, but Nokia wanted to rape Apple with much higher pricing.
Exactly; the cited article totally misses that this settlement is Apple’s tactics which was intended to make Nokia offer **real** fees, not extortion-level they asked from the beginning.
Now, with courts of this type may going almost forever, and Nokia profits declining, they had to have some reason — what Apple wanted from very beginning.
Exactly. Wasn’t the original filing by Apple saying that Nokia wasn’t charging FRAND terms, but wanted triple?
If Apple was indeed violating Nokia licenses, then I’m glad Apple paid up. It was the right thing to do. Apple has rightfully been critical of others who ripped of their IP. They needed to follow the same laws as everyone else. The big question will be what happens to Google and other Android-based phone makers. I would imagine Nokia will be gunning for them next. Those free Android licenses aren’t looking so free after all.
Apple is very good about paying licensing fees when appropriate. The problem here was that Nokia wanted Apple to pay at a higher rate than the rest of the industry. Apple always said they’d pay. They just wanted to pay fair market value, not an inflated amount.
breeze,
Totally agree. Nokia finally was forced to get of its high horse and deal with Apple fairly. The article seems to put too high a focus on how terrible Apple is and totally white washes any real issues.
Plus, “but if I were an Apple shareholder, I would probably view this outcome favorably. Nokia emerges victorious, but this is a sweet defeat for Apple because its competitors — especially those building Android-based devices — will also have to pay Nokia, ” WHAT a BLOW HARD for Nokia…. LOL
Nokia is going to remain “victorious” —- at the bottom of the heap… 🙂
Just a thought,
en
Ok good. Settled and true capitalism won. Pay up apple and move forward
Apple should definitely purchase the Nortel patent portfolio mostly 4G and LTE stuff.
Just read the full article…… Yep, a big blow hard with little to no facts, just blogging to hear himself blow.
He totally ignores Apples lawsuits against Nokia vs iPhone . From other articles I read, there is no doubt that Apple was going to pay royalties to Nokia but just not the super over the top crap they wanted to support their bottom line. They shamelessly copied the iPhone then tried to sue Apple.
Sorry, just a crap company on their way to the bottom looking for ways to stay afloat.
Happy tuesday.
en
Looks like Nokia finally found something it can make money on.
Heck, if Nokia keeps losing market share. Apple may be able to just buy the company a wholesale pricing in 2 years. 🙂
Apple enters into patent license agreement with Nokia
There ya go MDN, I fixed the headline for you.
Ah yes, much better.
better
MDN is taking the long-term view. 🙂
…and Apple will turn around and tax every Android maker to pay the Nokia settlement 🙂
Also, Apple didn’t ever dispute the need to make royalty payments to Nokia — only the amount. Apple felt that Nokia demanded excessive royalties. Since the terms weren’t released, no one really knows if Nokia actually won the case it filed.
Apple bows for Nokia. If Apple was in the right they would have never given up in this case! Apple knew it stole from Nokia and dropped all of it’s legal fight and gave in. I love it! Amazing news! Who was Apple kidding? The fanboys! LOL
Tweedledee…
Marco, you’re too stupid to understand anything.
Just too stupid.
Still looking for his Polo.
This is exactly what I thought would happen. Apple got all self righteous and started suing and countersuing companies like Nokia in relation to mobile phone stuff. And it’s backfired. Apple is way late to the mobile phone game, and companies like Nokia are simply sleeping patent giants.
Apple needs to get pushed around a bit because believe it or not it is good for competition. All the nerd fanboys on here start getting blue in the face.
Time to pay up Apple. Ha.
And his brother Tweedledum.
A wise business decision. Pay to a lesser competitor, and weak stronger competitors by force them to pay too.
This is stupid. Stupid lawyers, stupid people at Apple and stupid steve jobs who inclined his head to these abusive people at Nokia. Once again Apple loses so stupidly.