Apple and Nokia are two renowned smartphone manufacturers of the world. Last year, we heard the news of a fight between these two brands. This fight continued as a lawsuit for about nine to ten months. Now, both the parties have arrived at a settlement of this suit. Apple has agreed to pay $2 billion to Nokia. This settlement took place back in May, but both the companies have not disclosed the terms till now. Nokia has made it public that it had received $2 billion upfront payment from Apple. It seems huge amount but does not mean that Nokia will get it again and again. This is the total amount concluded for settlement and Nokia will receive it once.
Nokia accused Apple of breaking its patents and also patients from NSN and Alcatel. Nokia is the owner of these companies and their portfolios. Since the launch of iPhone 3GS Apple is using its patents. Thus, the patent is broken long ago by the company. Nokia has also made it clear that these patents relate with software, video coding, chipsets, display, UI, and antenna.
The fight seemed quite intensive in the beginning as Apple removed Withing’s products from its stores. This is because Withings was also a sub-brand of Nokia. But, after some thoughtful discussions, both the companies have arrived at a settlement. Apple did not want to linger it on because it already had a clash with Samsung. Now, Withing’s products are present in Apple’s stores.
Both the companies now want to cooperate with one another both in research and technology. In other words, we can also say that Apple is going to pay Nokia to help the company in the improvement of digital health, optical network, and IP routing. Nokia’s next quarter income will make the position clear that how much Apple is paying for its services.