Nokia, Apple settle Patent License row

Nokia has recently signed a patent license agreement with Apple. This agreement would settle all the patent litigations among the two smartphone manufacturing giants. This move comes in the wake of the withdrawal of the complaints filed by both Nokia and Apple to the US International Trade Commission.

The financial structure of the agreement includes a one-time payment payable by Apple and continuous royalties to be paid by it to Nokia for the period of the agreement. However, the specific terms and conditions of such contract are confidential.

Stephen Elop, president and chief executive officer of Nokia stated on this agreement, "We are very pleased to have Apple join the growing number of Nokia licensees."

He also added, "This settlement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."

Since past two decades the Finnish mobile maker, Nokia has invested around EUR 43 billion in research and development and due to that the company has made strongest and broadest IPR portfolios, with over 10,000 patent families.

This agreement is expected to give a good financial impact on Nokia’s newly revised outlook for the Q2 this year of around break-even non-IFRS operating margin for gadgets as well as services.