Nokia vs Apple lawsuit settled [Updated]

It looks as though Nokia and Apple have finally come to an agreement over the lawsuit they have been involved in since late 2009, with Apple agreeing to pay licensing fees for key Nokia patents. Originally, Nokia claimed that Apple had infringed on almost two dozen of their patents for mobile technologies. Apple argued that Nokia was demanding "unfair" licensing fees and didn't want to pay more than other companies licensing the same technology, then counter sued for UI and computer-related patents. Complaints flew back and forth, and now the end result of the lawsuit was that Apple has to pay Nokia a lump some of of cash on top of royalties for the term of the agreement with Nokia.

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.

"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."

Apple having to pay Nokia was never really in question. The argument was over how much. Nokia's patents were in a pool that was supposed to be freely and fairly licensed to everyone. Apple felt Nokia was violating the letter and spirit of that by asking more of Apple. Whether or not Apple eventually got the same terms as other licensees, or whether they did have to pay up more, is still a question.

Apple also remains in litigation with the three top Android makers, HTC, Samsung, and Motorola. For now, Nokia is no longer in litigation with anyone.

UPDATE: Apple has issued a statement to the New York Times [NYT]:

[Nokia via FossPatents]


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There are 34 comments. Add yours.

phinx404 says:

wow. wonder what they settled for and what the royalties are going forward.

(Copy of) Dev says:

Rumors right now are between $608 million and $715 million lump sum and $11 per phone in ongoing royalties

CJ says:

I recently bought Nokia shares because I knew this would happen. Thank you apple for you cash. I'm thinking they paid more than that. It should be in the billion. Especially looking at Apples profits using technology they do not own.

olearymo says:

I'd agree, I'd say it'd be a matter of billions. Or at least a billion

CJ says:

thanks a billion Apple

eahinrichsen says:

“We are very pleased to have Apple join the growing number of Nokia licensees"
Wow. That is some Steve Jobs level snark right there. I love it. :)

dloveprod says:

Lol I got a ki out of that

OrionAntares#CB says:

I'm pretty sure quite a few people at Nokia couldn't wait to make that statement just for "salt in the wound" value.

sangs says:

Somewhere Bill Gates is laughing, because we all know only Microsoft does such evil things!

rgar3388 says:

Nokia phones are lame! iOS FTW!

Mario Leal says:

they'll build a spaceship in cupertino, certainly they can pay for that.

(Copy of) Dev says:

This was the only possible outcome. Apple always knew they would have to pay, as Nokia's patents are well established throughout the industry and legal system. The only question was how much. Apple obviously felt Nokia was asking too much (probably cross-licenses of things Apple did not want to license), and the rest of Apple's moves were simple posturing to drive the price down.
Today, we simply reached the day when either Apple felt they had more to lose by saber-rattling, or Nokia was in a weak enough position they needed to accept a lower price. But we were always going to get here, one way or the other.

icebike says:

Yet it seems Apple has no qualms about blatantly stealing IP from other companies while unleashing its junk yard dog lawyers on any one who makes a phone that even vaguely resembles theirs.
This is a company that doesn't play fair. Apple was NOT being asked to do more as the summary stated, they were simply being asked to do what all the other members of the patent pool agreed to.
The day this story broke, seems like years ago, I posted here that Apple was clear in the wrong on this issue.
Of course I was immediately dismissed as a hater (that marvelously juvenile term of derision) on these boards and Rene refused to even post the story for a week or more after I tipped tipb about it.
The amount of the lump sum stays secret because it is huge, but you can't hide that amount of money for long.

Hrvoje Gradecak says:

Well, now at least Nokia will have some cash to surve a little bit longer... ;)

Move on, nothing to see says:

Nokia patents are mostly for hardware related issues, for antennas, Bluetooth etc radio, and 3G. It was pretty slim possibility that Apple could win this one. So they did sensible decision and paid. Now they can move on.

Hunterbarrett1989 says:

lump SUM you guys really need a grammar/spelling editor. Heck, if you paid me, I'd do it.

ShadowReaperX33 says:

Well apparently you are not paid to open your mouth so shush.

Gregz0r says:

Wait... No 'Fire Everything!' pic?

OrionAntares#CB says:

This article would have dictated a "white flag" pic.

Marcus Sanford says:

I suppose when the rest of the company collapses, Nokia will still have the patent revenues to keep them afloat.

Carioca says:

Of course, because fanboy hapiness can only be expressed through other companies demise.
BTW, Nokia still commands almost 30% of the mobile phone market, about ten times more than Apple, so I guess they are not about to collapse anytime soon.

icebike says:

Nokia may not be as dead as the Apple enthusiasts think.
After all, when they start releasing Windows phones in droves they will have Microsoft to help them with marketing. Windows phones may be late to the market, but they will have some leverage from multiple providers, one of which (Nokia) still has a huge following.
There is another story here that indicates that the WinPhone may be the big winner in this settlement.

Marcus Sanford says:

Nokia has a large, but rapidly shrinking, market share. And no, I do not believe that the move to Windows Phone will do anything but forestall the collapse by a bit.

DiamondDNice says:

What's interesting to me is everyone thinks Apple can do know wrong and they never infringe on patents but here they are agreeing to pay licensing fees and to pay a fee. So clearly they are not perfect. Clearly it's possible that they misbehaved and are paying their fair share now. And if they can be wrong here, they can be wrong in other cases like Lodsys or Samsung.
not saying they are. I'm saying i'm not going to assume Apple is always right or has patents for everything. I'm not a fanboy. I'll take the facts as they are for or against apple. If samsung is wrong they should pay if not they shouldn't. If Lodsys owns a valid patent they should be paid If not they shouldn't.

icebike says:

Show us your next iPhone is simply "turn-about is fair play". How can it be fair for one side and harassment for the other?

Oletros says:

"Now Nokia can target every single Android manufacturer because in copying the basic iPhone functionality they turned around and violated those same patents"
What? Have you read the original filing and the patents involved? There is none related to iOS

ubsa says:

Their legal doesn't have any impact on people purchasing. fan of both will bury their own choice.LOL

theviki says:

How about Nokia NOT taking on Android, it's too small for that, now. It's main selling point is in Asia anyway. I think that Nokia should have an alliance with Google, I know it's never going to happen, but if they did, they could take over iOS at any time...
Apple has been loosing many lawsuits recently, but they still think that hey are at the top of the world. Android is catching up really fast, so they decided to hurry up and release the 4S, and not to mention the increasingly popular Windows phone, even though I don't like those too much either...
If Nokia started using Android as they're main OS, they have a chance to get back into the US market.