Well, would you look at that: Those big kids in the mobile phone playground can play nice together after all, especially when cash money is in play. After nearly two years, the patent disputes between Apple and Nokia have come to a close, with Cupertino throwing a pile of money at the problem to make it go away.
MacRumors is reporting that Nokia and Apple have “entered into a patent license agreement,” ending nearly two years of lawsuits over patents. While the move is a clear victory for Nokia in the midst of sagging smartphone sales, at least one observer believes the settlement will also give Apple an upper hand in its fight against Android as well.
“Nokia announced that it has signed a patent license agreement with Apple,” Nokia announced in a press release on Monday night. “The agreement will result in settlement of all patent litigation between the companies, including the withdrawal by Nokia and Apple of their respective complaints to the US International Trade Commission.
“The financial structure of the agreement consists of a one-time payment payable by Apple and on-going royalties to be paid by Apple to Nokia for the term of the agreement,” the press release continues. “The specific terms of the contract are confidential.”
Nokia fired their first patent lawsuit against Apple back in October, 2009, with multiple claims escalating between the two companies in the months since. The settlement puts an end to Apple’s biggest patent trouble, but they still have ongoing litigation with other companies, including Kodak.
And what about the Nokia settlement being used as a blow against Apple’s Android-based rivals? According to FOSS Patents, Apple’s move will likely force Android handset makers to also settle -- and their pockets aren’t quite as deep as Cupertino’s.
“Nokia emerges victorious, but this is a sweet defeat for Apple because its competitors -- especially those building Android-based devices -- will also have to pay Nokia, and most if not all of them will likely have to pay more on a per-unit basis because they don't bring as much intellectual property to the table as Apple definitely did,” the report concludes.
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