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Nokia and Apple settle all litigation, sign business collaboration agreement

Nokia and Apple announced today they agreed on a multi-year patent license and settled all litigation related to their intellectual property dispute. Nokia will receive an up-front cash payment from Apple, but details of the agreement remain confidential.

Under a business collaboration agreement, Nokia says it will be providing certain network infrastructure products and services to Apple. Apple will resume carrying Nokia digital health products – formerly under the Withings brand – in Apple retail and online stores, and Apple and Nokia are exploring future collaboration in digital health initiatives.

Regular summits between top Nokia and Apple executives will ensure that the relationship works effectively and to the benefit of both parties and their customers, the Finnish multinational communications and information technology company announced in a press release.


“This is a meaningful agreement between Nokia and Apple. It moves our relationship with Apple from being adversaries in court to business partners working for the benefit of our customers,” said Maria Varsellona, Chief Legal Officer at Nokia, responsible for Nokia’s patent licensing business.

“We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia,” said Jeff Williams, Apple’s chief operating officer.

“This agreement will strengthen our collaboration. We look forward to supporting Apple,” said Basil Alwan, President of Nokia’s IP/Optical Networks business.

While details of the agreement remain confidential, Nokia will receive an up-front cash payment from Apple, with additional revenues during the term of the agreement.

The value of the agreement will be reflected partially as patent licensing net sales in Nokia Technologies and partially as net sales in other Nokia business groups, the Finnish company says. It notes that it will follow its existing practices for disclosing patent licensing revenue in its quarterly announcements and expects that revenues for the agreement will start to be recognised in the second quarter of 2017, including an element of non-recurring catch-up revenue.

Due to the up-front cash payment from Apple, Nokia intends to provide a comprehensive update of its capital structure optimisation program in conjunction with its third quarter 2017 results.

John Beckett