Apple Paid Nokia $2 Billion Cash Upfront To Settle Patent Dispute

Apple during last quarter made a one-time upfront payment of €1.7 billion to Nokia, or approximately $2 billion, to settle all litigation regarding patent disputes between the two companies, the Finnish firm has disclosed in today’s financial results.

According to Nokia’s earnings release, the firm has increased its cash inflow thanks to an upfront cash payment from Apple which was recognized in the second quarter 2017 results:
In the fourth pillar of our strategy, creating new business and licensing opportunities in the consumer ecosystem, the licensing and business partnership agreement that we reached with Apple in the quarter was a clear highlight.
You could see the benefit of that agreement in Nokia Technologies’ results, and we look forward to continuing to expand our overall business with Apple in the coming months.
We also closed a licensing deal with Xiaomi, a milestone win with a Chinese smartphone vendor, setting the stage for us to engage further with other vendors in the country.
 Nokia had first sued Apple in the US and Germany in 2016 for infringing on several of its patents. The companies were in talks over a licensing agreement but failed to reach a conclusion which led Nokia to file a lawsuit. Back then, Apple claimed that Nokia was trying to “collect excessive fees” through illegal patent transfer scheme.

 


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