Nokia received $2B from Apple as part of settlement agreement

Nokia received $2B from Apple as part of settlement agreement

Nokia has confirmed that it received an upfront cash payment of €1.7 billion ($2 billion) from Apple as part of the patent licensing lawsuit the companies settled in May.

This seems like quite a lot of money, but Nokia won’t get $2 billion every quarter — this was non-recurring catch-up revenue. Nokia hasn’t said what it plans to do with all this cash.
The lawsuit began late last year. Nokia first accused Apple of infringing some of Nokia’s patents as well as patents from NSN and Alcatel-Lucent — Nokia owns those companies and their respective patent portfolios.

                         


                                 

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According to Nokia, it’s been a longstanding infringement as Apple has allegedly relied on some of Nokia’s patents since the iPhone 3GS. Those patents are related to software, video coding, chipsets, display, UI and antenna.
Under the agreement, Nokia is providing Apple with certain network infrastructure products and services while Apple will sell Nokia digital health products in its online and retail stores. The two firms also promised to collaborate on future digital-health initiatives.
It’s going to be interesting to look at Nokia’s upcoming quarterly earnings release to figure out how much Apple is paying for this agreement. But there’s one thing for sure ,Nokia must be quite happy with this new revenue stream.