Nokia receives $2bn from Apple as part of patent settlement
Apple pays Nokia $2 billion over licensing dispute and partners with the Finnish firm for future development
As reported in May, Nokia and Apple were in a dispute with the former accusing Apple of patent infringement, which has now been settled with a payment of $2 billion.
The claims were made in relation to software, video coding, chipsets, display, UI and antenna, belonging both to Nokia and its subsidiaries, including NSN, Alcatel-Lucent and Withings, now Nokia Health.
At one point in the conflict, Apple removed all of its Withings’ products from its stores, but an agreement between the two companies was quickly reached, and all Withings products were quickly returned.
At the time no amount was disclosed in the settlement, but according to Nokiamob, Nokia has announced that it has received a cash payment of $2 billion from Apple, during the company's Q2 2017 earnings results conference call.
“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,” said Kristian Pullola, CFO at Nokia, said in the call. The amount has been described as a non-recurring catch-up revenue payment.
Now both Apple and Nokia are going a step further, collaborating on technologies and R&D, with Nokia specifically working with Apple on its digital health, optical health and IP routing.
Though Nokia, have yet to confirm what it plans to do with money, it has said that it will announce these intentions "in conjunction with our Q3 earnings" added Pullola.