Tuesday, June 14, 2011

Nokia v. Apple: Settled (for now)

According to Bloomberg:

Nokia Oyj (NOK1V) won an almost two-year patent struggle against Apple Inc. (AAPL), as the world’s two largest mobile-phone makers settled litigation in a deal that awards a one-off payment and royalties to the Finnish handset maker.

Nokia rose as much as 4.1 percent in Helsinki trading. The agreement will bolster the Devices & Services unit’s second- quarter profitability, Espoo, Finland-based Nokia said in a statement today. The details of the contract, under which Apple will pay Nokia an undisclosed sum and royalties for the term of the agreement, are confidential, the Finnish company said.


A critical point going unreported is whether Nokia received a cross-license to Apple's patents that will cover them as they devolve into a hardware supplier and distribution channel for Microsoft. Whether Microsoft is licensed may now be more important than whether Nokia is licensed. (SEE UPDATE BELOW)

While this is positive news for Nokia, the rumored amount of the settlement is unlikely to make up for Nokia's plunging revenues even for a quarter. At the time of this writing, Nokia shares are still well below their immediate post-warning level.

Update via telegraph.co.uk:

In a statement, Apple said "Apple and Nokia have agreed to drop all of our current lawsuits and enter into a license covering some of each others' patents, but not the majority of the innovations that make the iPhone unique. We're glad to put this behind us and get back to focusing on our respective businesses."

This will not be the end of Apple and Nokia's patent battles.


Previous coverage:

1 comment:

eric said...

From what I remember the argument between NOK and AAPL was over the price of the licensing with Apple claiming that it was being charged more than other licencees and therefore refused to pay. I guess we'll never know who actually "won" the argument but I think Florian Mueller feels that he did ;-)