Filtered By: Scitech
SciTech

Apple becomes Nokia licensee, ends patent clash


Tech giants Nokia and Apple Inc. finally ended a long patent clash dating back to 2009 by forging a patent license agreement. In a stock exchange release, Nokia said that both sides will also withdraw their respective complaints to the US International Trade Commission. The specific terms of the agreement were not made public, other than Apple paying a one-time amount and subsequent royalties. "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," Nokia said in a statement. 'Positive financial impact' for Nokia Nokia said that the agreement is expected to have a positive financial impact on its recently revised outlook for the second quarter 2011 of around break-even non-IFRS operating margin for Devices & Services. Nokia and Apple are giants in the mobile device industry, with Nokia specializing in mobile phones, and Apple making the popular iPhone and iPad devices. Nokia president and chief executive officer Stephen Elop said that his company is "very pleased" to have Apple join the growing number of Nokia licensees. "This settlement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market," he said. According to Nokia, it invested about 43 billion euros in research and development and built one of the wireless industry's strongest and broadest IPR portfolios, with over 10,000 patent families in the last two decades. "Nokia is a world leader in the development of handheld device and mobile communications technologies, which is also demonstrated by Nokia's strong patent position," it said. Nokia claims a user base of over 1.3 billion people worldwide. Exchange of complaints In 2010, Nokia had extended its patent-infringement claims against Apple Inc. to include the then-new iPad tablet. The latest complaint, filed in U.S. District Court in Madison, Wisconsin, follows other lawsuits by Nokia claiming Apple products violate Nokia patents. It said the disputed technologies help reduce the size and cost of electronic gadgets. On the other hand, Apple responded with its own infringement claims against Nokia. Apple had also sued Taiwan's HTC Corp., one of the leading producers of cell phones that run on Google Inc.'s Android software. Nokia's latest lawsuit claimed the iPhone and iPad 3G violate five of its patents related to technology that makes voice and data communications more efficient, which allows the devices to be more compact. Apple filed a countersuit to earlier claims by Nokia claiming Nokia is infringing on 13 of its patents. The two mobile-phone makers have been in litigation since October 2009, when Nokia filed a lawsuit accusing Cupertino, California-based Apple of infringing patents. Nokia also demanded royalties on the millions of Apple iPhones sold since the device’s introduction in 2007. Nokia said in March it has 46 patents asserted against Apple in civil lawsuits and complaints lodged with the U.S. International Trade Commission. 'Hundreds of millions of euros' compensation “Nokia emerges as a clear winner from the fight," Sami Sarkamies, an analyst at Nordea Bank AB in Helsinki, said in a note to clients, according to a Bloomberg report on Businessweek. It said the initial payment will likely be in the range of hundreds of millions of euros related to about 200 million Apple devices delivered to date, Sarkamies said. Businessweek also quoted Apple as saying Nokia will have a license to some technology, “but not the majority of the innovations that make the iPhone unique." Apple also gets a license to some of Nokia’s patents, including ones that were deemed essential to industry standards on mobile phones. “This frees up resources for both Apple and Nokia," said Florian Mueller, a Munich-based consultant and intellectual property activist. “Other companies whom Nokia will ask to pay royalties will have to think very hard whether to pay or pick a fight." “We’re glad to put this behind us and get back to focusing on our respective businesses," said Steve Dowling, an Apple spokesman. — TJD, GMA News

Tags: apple, nokia, appleios
LOADING CONTENT