Nokia and Apple have announced today that they have settled all litigation related to their intellectual property dispute and agreed a multi-year patent license.
Under agreement between both, “Nokia will be providing certain network infrastructure products and services to Apple.” While in return, Apple agreed to resume Nokia’s digital health (Withings) products to Apple retail and online stores.
“This is a meaningful agreement between Nokia and Apple,” said Maria Varsellona, Chief Legal Officer at Nokia, responsible for Nokia’s patent licensing business. “It moves our relationship with Apple from being adversaries in court to business partners working for the benefit of our customers.”
Later last year, Nokia had filed multiple lawsuits against Apple and then expanded the complaints covering 40 patents in 11 countries. In response, Apple sued Nokia claiming the Finnish tech giant was trying to collect massive fees for its patents via several patent assertion entities.
Withings Health Products affected with Nokia and Apple patent war
Further, in the escalation of patent war between the two tech giants, Apple pulled all Nokia digital health products (aka Withings formerly) from its stores all around the world. These products included the Body Cardio Scale, the Smart Body Analyzer, and the Wireless Blood Pressure Monitor. For the move, Apple customers had divided response where some appreciated their favourite brand while others called this move as a childish act by removing products that helped not the people but patients for their health services.
But now, following the latest development, these health products will be shelved again on Apple stores. On the other hand, Nokia will receive an up-front cash payment from Apple, with additional revenues during the term of the agreement. Though, the details of the agreement (including the amount figure) remain confidential.
Nokia will receive an up-front cash payment from Apple with additional revenues forthcoming. The figure remains undisclosed, but net sales in Nokia patent licensing and business groups will partially reflect the value of the agreement. Finnish tech giant expects its patent licensing revenues to be reflected in the second quarter of 2017.
Nokia will to provide a comprehensive update of its capital structure optimization program in conjunction with its third quarter 2017 results.
