By: Aseem Gaurav on June 14, 2011
Apple has agreed to pay Nokia royalties for using Nokia technology in its devices, settling a long-running legal battle between the rival handset makers.
The deal will settle all patent litigation between the two companies, and the two will withdraw their respective complaints with the U.S. International Trade Commission over the use of intellectual property. Moreover, Apple will pay Nokia an undisclosed one-time fee and on-going royalties.
The Finnish company in a statement said that Apple will become a licensee. Nokia filed lawsuits against Apple over intellectual property throughout 2010.
“We are very pleased to have Apple join the growing number of Nokia licensees,” said Stephen Elop, the Nokia president and chief executive. “This settlement demonstrates Nokia’s industry-leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.”
Over the past few years, Nokia has consistently lost its marketshare to the iPhone and Android devices, which now sees the settlement to have a positive impact on its second-quarter performance. Earlier, the company had entered in to an agreement on form a strategic alliance with Microsoft in a bid to regain lost ground. This was accompanied by complete corporate re-structuring, massive job-cuts, and multiple credit rating downgrades.
