Apple pays Nokia $2 billion to avoid patent dispute
In the tech world there’s often fights over creative rights. And Recently Apple and Nokia just had a huge fight. Which resulted in Apple paying Nokia a staggering amount of 2 Billion dollars for patent dispute.
“We got a substantial upfront cash payment of €1.7 billion from Apple, strengthening further our cash position. As said earlier, our plans is to provide more details on the intended use of cash in conjunction with our Q3 earnings,” reads the official transcript of Nokia’s quarterly earnings call with investors earlier. Neither Nokia nor Apple have disclosed the terms of the new licensing deal, including whether it involves recurring payments or how many years it will be in place.
It all began last year when Nokia accused Apple of violating the terms of agreement on dozens of patents by Nokia and their subsidiaries. Given Nokia’s been around for a very long time, many smartphone makers license the company’s patents for everything from display technology to antenna design. Apple had such a deal with Nokia since 2011 after a patent dispute back then. But Apple reportedly did not want to sign a new deal after that and accused Nokia of seeking unfair terms. This lead to present day dispute.
Nokia filed suit in multiple countries against Apple.
And they replied with an anti-trust suit. Then Nokia directly sued Apple. The dispute got so ugly that Apple briefly pulled Nokia-owned Withings products from its online store and from Apple Stores worldwide.
Finally, Apple decided it had gone too far and they didn’t want another long running and ugly dispute like they had with their other rival Samsung. So, a new settlement was announced back in May without the disclosure of a financial amount or the new licensing terms.
It won’t affect Apple much financially. They have more than a quarter-trillion dollars in cash and investments sitting outside of the US. But it just might save them from a pr nightmare.
Corporate disputes isn’t a new thing in tech world. Let’s hope this new settlement will hold out better than the last time.