Apple Settles With Nokia Over Patent Dispute

June 15th, 2011 at 12:55 pm
 


There’s big business in licensing fees, especially for tech giants. And with reports of big tech companies suing each other for patents that one company uses without consent from the other that owns it, there tends to be big money involved. One such case involved Apple settling with Nokia for a patent dispute.

According to a released statement from Nokia, Apple has recently agreed to settle and license the wireless phone patents that it uses on its various iDevices that is owned by Nokia. It is the culmination of a long-running dispute between the two companies that started in October of 2009. At that time, Nokia sued Apple for allegedly using over 10 Nokia owned patents associated with technology to make phones run on GSM, 3G and WiFi networks.

Apple refused to acknowledge the Nokia patents, which also included technology for wireless data, speech coding, security as well as encryption. But instead, it filed a counter suit, alleging Nokia of using 13 Apple patents. It also denied any copyright infringement relating to using Nokia’s patents for its products.

Things turned even uglier when Nokia filed a complaint with the US International Trade Commission, saying that Apple was in violation of using patented technology without proper licensing. Nokia noted seven patents it owned that it said has been used on virtually all of Apple’s mobile phones, portable music players as well as computers.

Maybe Apple became too tired of handling this dispute that it knows may not amount to anything to the company’s bottom line. It has recently agreed to signing a patent license agreement with Nokia, thereby ending the long running patent dispute. Apple may have thought that settling would be less demanding and stressful for everyone involved and that their resources would be better off used to something more productive for the company. After all, with Apple’s recent run at success, it may be more than afford of paying Nokia, which experts say, would likely be around $608 million as one-time payment. That amount does not yet include the ongoing royalties that Nokia will be getting from Apple product sales.

With the amount it is expected to receive, Nokia may be able to pad the dismal revenue results it may be getting for the second quarter of the fiscal year. It may be a welcome relief for Nokia, that has been suffering lately in their dwindling market share due to the arrival of the iPhone as well as those Android smartphones. But this relief may just be a temporary break from the usual that may not solve Nokia’s more pressing problems.

 

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