Court battle ends, Apple to pay Nokia royalties

14 June, 2011
Nokia has just announced it signed a patent license agreement, which settles all the patent litigation between the companies. Apple will make a one-time payment to Nokia and both sides will withdraw...

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  • GrainySnapshot
  • PP7
  • 15 Jun 2011

The confidentiality thing leads me to a lot of fun speculation. Arguably, people only agree to confidentiality if doing the deal as such outweighs the need to publish the detail of the deal. If the settlement amount was small, that would explain why Nokia wanted it kept secret because it would embarass them but why would Apple then agree to it? The fact that Nokia would accept a small amount would have to fill Apple with confidence that it was going to win the litigation. So why you would expect that it would reject the confidentiality clause because (a) it could afford to take the risk (b) they would not want people thinking the amount was large if it was not (c) the only thing that counteracts the perception that this amounts to an acknowlegment that Nokia is the technological innovator not Apple would be not paying very much. So, that analysis (OK rank speculation) suggests the settlement amount was not small.
Compare that to the assumption it was large. Apple then would want the figure kept secret because it would embarass it that it had to pay a large amount (on top of the perception that it is not the technological innovator). Nokia would like the amount made public but its desire in that regard would be more than outweighed by the desire to get the cold hard cash.
So, that all tends IMHO to support an inference that the settlement amount was big.

    • G
    • GrainySnapshot
    • PP7
    • 15 Jun 2011

    Cheesey1, 14 Jun 2011GSMArena, you could probably figure out what the settlement... more@Cheesey1
    It would be grand if someone could delve into both companies' balance sheets and profit and loss to extrapolate/interpolate the settlement amount. Unfortunately I suspect both Nokia and Apple will want to bury the figures and there are lots of ways to do it. For example, Apple is always acquiring new technology in lots of different ways (total buy outs of startups, purchase of existing patents and copyright from other companies, licensing from myriad other technology developers, employing key minds, and of course, in house development). There are so many different ways to chop up and allocate the cost of the payments to Nokia and the amounts Apple spends each year fluctuate so much you would never know which part represented the Nokia deal. Still, I hope someone has a red hot go!

      • ?
      • Anonymous
      • Lh{
      • 15 Jun 2011

      Do not forget that Apple wanted to pay at the very beginning but not the price Nokia was asking. Nokia lowered the price, Apple pays and everybody is happy. Simple as that.

        • ?
        • Anonymous
        • 3Yi
        • 14 Jun 2011

        Apparently this has implications for Android manufacturers as well. By settling with Nokia, Apple has now exposed Android to the same litigation.

        Payments from Android manufacturers may be larger, due to the fact that the Apple-Nokia settlement is a cross licensing one, where Apple also has many patents.

        Interesting.

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          • AnonD-5197
          • qbY
          • 14 Jun 2011

          AnonD-3575, 14 Jun 2011its funny because people bash the iphone and then buy sgs ... moreFunny... That's all you got to say about the company who produced the best smartphone of the year for 2 consecutive years.

            • ?
            • Anonymous
            • n7U
            • 14 Jun 2011

            Poor Nokia trying to get some money from everywhere now

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              • AnonD-3575
              • s0M
              • 14 Jun 2011

              Warren-G, 14 Jun 2011When would samsung copyny produce a high-end phone of their... moreits funny because people bash the iphone
              and then buy sgs which is a blatant copy
              not to mention bada... lol

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                • Ashura
                • MA%
                • 14 Jun 2011

                AnonD-40, 14 Jun 2011You guys know why Apple settled? It's to slow down Android.... moreI realy doubt that was the reason Apple settled i don´t think Apple is that cunning.Besides what reason would Nokia have to sue other companies over Android runing devices except pure stupidity?

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                  • AnonD-4616
                  • Lbm
                  • 14 Jun 2011

                  Abhishek kumar deo , 14 Jun 2011Nokia is a great company but handset price is high hey..just check out the price of nokia's high end models. And compare with same featured smartphones of other companies like Samsung, HTC, iphone, .....
                  nokia is cheaper than other manufacturers

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                    • Warren-G
                    • 3sE
                    • 14 Jun 2011

                    [deleted post]When would samsung copyny produce a high-end phone of their own without copying other major phone makers concept and design. No innovation of their own.Samsung copyny thinks its all about fast processor. Most people buy phones bcos of their design.

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                      • Cheesey1
                      • k9p
                      • 14 Jun 2011

                      GSMArena, you could probably figure out what the settlement amount was if/when apple takes a charge on their income statement to record the one time payment, which I would expect them to do (from a good governance/disclosure perspective). They apparently didn't set up a reserve on their balance sheet for the litigation (which is pretty surprising, to me anyway), so they should disclose the amount at some point, unless they amortise it and hide it in their ongoing costs. Likewise, you could also check Nokia's future statements to see if they record the one-time gain from the lit. on their income statement.

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                        • saim ostion
                        • 9A8
                        • 14 Jun 2011

                        i m very happy with that i hope it will be goodwill of nokia

                          • J
                          • J
                          • Yh1
                          • 14 Jun 2011

                          AnonD-40, 14 Jun 2011It's part of the agreement. It's the royalty and it's simil... moreIt's a hardware patent, not a software patent.

                          The radio communication technology (GSM) is what what the patent refers to. It's doesn't matter what OS the phones run. Every phone manufacturer pays royalties to Nokia regardless of the OS. HTC still pays the same patent royalty to Nokia whether they sell an Android or WP7 device. Samsung has to pay the royalty when using their in-house Bada OS. Apple isn't forcing Google/Android into any sort of corner-- everyone else was already playing by the rules.

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                            • Abhishek kumar deo
                            • vwe
                            • 14 Jun 2011

                            Nokia is a great company but handset price is high

                              • ?
                              • Anonymous
                              • p8c
                              • 14 Jun 2011

                              How Apple is run and always will be run. Well at least Nokia is getting paid by these con artists.

                              http://www.youtube.com/watch?v=CW0DUg63lqU

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                                • anonymous
                                • t7X
                                • 14 Jun 2011

                                [deleted post]doesn't matter i also like samsung though i like nokia more, apple is the only one that i don't like...

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                                  • simple user
                                  • Sve
                                  • 14 Jun 2011

                                  i really wonder if now after that success in court Nokia will concentrate on suing othe manufacturers instead of produce some new mobile?

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                                    • Nonameos
                                    • PFx
                                    • 14 Jun 2011

                                    Samsung Fan boys / salesman are always yelling "go samsung go" and spitting on other brands. I don't like 'em. Don't actual Samsung! Bad attitude.

                                      • d
                                      • dny
                                      • Mfx
                                      • 14 Jun 2011

                                      Why?, 14 Jun 2011"Now would everyone just focus on making better smartp... more:)) yeah , good one ..... but it's true... will they ?

                                        • r
                                        • ruzul
                                        • bJg
                                        • 14 Jun 2011

                                        Anonymous, 14 Jun 2011why shouldnt they have license agreements for Android devic... morehey we all knw that android is good n having better apps but in that place imac of iphone stands 1st in the field so i thing nokia n apple gone make their field over the market n imac stand 1st in apps still nw n android will counldent take over on it