Apple Paid Nokia $2 Billion Cash Upfront To Settle Patent Dispute

A couple of months ago, Apple and Nokia announced that they have settled their patent dispute and entered into a multi-year licensing and business cooperation agreement. In their announcement, none of the parties revealed the details of the agreement or the amount of money involved in settling the dispute.

Now, Nokia has disclosed in its earnings call that Apple has paid it almost $2 billion (€1.7 billion) in cash upfront for settling the patent dispute. The company also provided more details on its licensing agreement with Apple which it says is more than a “simple patent licensing agreement.”

The company says that it has agreed on an extensive business collaboration with Apple which will give a “meaningful uplift” in its IP Routing, Optical Networks and Digital Health businesses over time.

Third, instead of a simple patent licensing agreement, we have agreed on a more extensive business collaboration with Apple, providing potential for a meaningful uplift in our IP Routing, Optical Networks and Digital Health business units over time. Hence, the value of the agreement will be reflected partly as patent licensing net sales in Nokia Technologies, and partly as net sales in other Nokia business groups.

Nokia had first sued Apple in the US and Germany in 2016 for infringing on several of its patents. The companies were in talks over a licensing agreement but failed to reach a conclusion which led Nokia to file a lawsuit. Back then, Apple claimed that Nokia was trying to “collect excessive fees” through illegal patent transfer scheme.

[Via Seeking Alpha]