After a long series of patent infringement lawsuits that began in 2009 and continued with many twists and turns along the way, Nokia has emerged the victor by signing a patent licensing agreement with Apple. The agreement will result in 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. This will certainly be the tech story of the day.
Nokia Press Release
According to Nokia's official Press Release, they have "signed a patent license agreement with Apple. The agreement will result in 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 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."
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. Nokia is a world leader in the development of handheld device and mobile communications technologies, which is also demonstrated by Nokia's strong patent position.
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.
Nokia's victory will likely have a ripple effect in the industry, with Google being the next to reach a licensing deal with Nokia. You could be sure that Steve Balmer is smiling this morning, being that they entered into a strategic alliance with Nokia earlier this year. You win some, you lose some and life moves on. As of this moment, Apple has yet to officially respond to the licensing agreement. I'm sure that when they do, it'll be positive spin to be sure.
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