Nokia, Apple end patent litigation

ESPOO, FINLAND: Putting an end to the patent battle with Apple, handset giant Nokia said on Tuesday that both the companies have entered into a licensing agreement.

While making this announcement, Nokia said the deal will result in the 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 ongoing royalties to be paid by Apple to Nokia for the term of the agreement, Nokia said in a press release. However, it said 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. “This settlement demonstrates Nokia's industry-leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.”

During the last two decades, Nokia has invested approximately EUR 43 billion in research and development and built one of the wireless industry's strongest and broadest IPR portfolios, with over 10,000 patent families, said the release.

The handset major said this agreement is expected to have a positive financial impact on Nokia's recently revised outlook for the second quarter 2011 of around break-even non-IFRS operating margin for Devices & Services.