The technological biggies, Nokia Corp. and Apple Inc. signed a license agreement, thereby putting an end to the patent tussle, which has been on since long.
The end.. (Image credit: ubergizmo.com)
The two companies doused the last flames by withdrawing their individual set of complaints to the U.S. International Trade Commission. As per the latest developments, it has been decided that Apple will have to pay a one-time fee and ongoing royalties to Nokia for the term of the agreement, however, financial details of the same weren’t disclosed. The tussle that was on since the past two years or so, saw the iPhone maker caught in the web of patent litigations. Popular handset manufacturer, Nokia had accused Apple of violating over 10 patents, to begin with which pertained to the GSM, 3G, and Wi-Fi functionalities, as also those of wireless data, speech coding, security and encryption.
is likely to be paid millions of dollars by Apple after the Finnish handset makers won apatent dispute that is nearly two years old. Nokia says the settlement will help boost its second-quarter earnings. Analysts have also welcomed the move and say that the settlement will help Nokia focus on its core business at a time when it is grappling with multiple challenges.
Though the settlement amount has not been yet disclosed, analysts believe Nokia may be given 1% to 2% of iPhone revenues that is nearly USD 40 billion. Nokia, once a dominating name in the handset industry, is presently facing an uphill task to compete with Apple and Android devices in the smartphone segment. An embattled Nokia recently hinted at missing targets in its second quarters, sparking rumors of its slump in the industry. Speedy settlement, however, has indicated that Nokia had a robust case.
Analysts believe Nokia's next target could be Google Android phones as the Finnish handmakers are in strong position to collect royalties from other players in the industry. The victory has certainly given an extra edge to Nokia but analysts think it may not be enough. They are of the opinion that the company has a long way to go before regaining its dominance in the industry. With the new Nokia handsets based on the Windows Phone 7 platform expected soon, this win over Apple might just give Nokia a bit of a moral boost to fight the heavily contested smartphone battle.
Nokia and Apple were locked in the legal tussle since October 2009, when Nokia dragged Apple to the court claiming that the iPhone makers had infringed on its patented technologies. After clinching the victory over its arch rival, Nokia now aims to further intensify its legal battles. "We are very pleased to have Apple join the growing number of Nokia licensees," says Stephen Elop, president and chief executive officer of Nokia. "This settlement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."
Source: Wall Street Journal