Smartphone major Apple and telecom equipment maker Nokia have announced that they have settled all litigation related to their intellectual property dispute. Both the companies have now signed a multi-year patent license agreement.
“This is a meaningful agreement between Nokia and Apple,” Maria Varsellona, Chief Legal Officer at Nokia, responsible for Nokia’s patent licensing business, said in a statement
Varsellon stated that the agreement now moves Nokia’s relationship with Apple from being adversaries in court to business partners working for the benefit of our customers.
“We are pleased with this resolution of our dispute, and we look forward to expanding our business relationship with Nokia,” said Jeff Williams, Apple’s chief operating officer.
Under a business collaboration agreement, Nokia will be providing certain network infrastructure product and services to Apple. Apple will resume carrying Nokia digital health products (formerly under the Withings brand) in Apple retail and online stores, and Apple and Nokia are exploring future collaboration in digital health initiatives. Regular summits between top Nokia and Apple executives will ensure that the relationship works effectively and to the benefit of both parties and their customers.
“This agreement will strengthen our collaboration. We look forward to supporting Apple,” said Basil Alwan, President of Nokia’s IP/Optical Networks business.
Nokia will receive an up-front cash payment from Apple, with additional revenues during the term of the agreement. The details were not disclosed.
Nokia said that the value of the agreement would be reflected partially as patent licensing net sales in Nokia Technologies and partly as net sales in other Nokia business groups. The Finnish gear maker said that it now expects that revenues for the agreement will start to be recognised in the second quarter of 2017, including an element of non-recurring catch-up revenue.
Due to the up-front cash payment from Apple, Nokia intends to provide a comprehensive update of its capital structure optimization program in conjunction with its third quarter 2017 results.