Finns can celebrate. Already in May this year, Apple and Nokia signed a patent agreement that ended a long-term judicial struggle. However, we did not know any details about this settlement. The situation was explained (at least partly) with the presentation of the Nokia’s financial results for the second quarter of this year. Finish company has received €1.7 billion paid in cash.
Initially, the origin of this money was unknown, but Nokia has confirmed that it comes from Apple. What are the finances of the Finnish telecom’s tycoon? It is not bad, the company is digging out, and the results presented are better than expected. Nokia Technologies’ operating profit for the second quarter of this year is 90% higher than it was a year ago for the same period. The cash injection amounted to €1.7 billion. However, the whole company is down. Operating loss is €433 million, but it is 40% less than in the second quarter of last year. At that time, Nokia recorded a loss of €667 million. Therefore, everything is on the right track.
Nokia will come out simple thanks to the deal with Apple.
Already mentioned €1.7 billion from Apple is only the first transfer from the giant from Cupertino. In May, both companies signed a patent agreement under which Apple agreed to pay a percentage of its revenue. These are the licence fees for using the patents belonging to Nokia. Of course there are quite old solutions that are still used in modern smartphones. For example, Nokia designed the first mobile phone with an internal antenna and, of course, patented the solutions used at that time. It turns out that Apple used them in the iPhone design. Both companies have been fighting in court for years, but it’s over.
Long-term judicial struggle was exhaustive for both companies. That is why Apple and Nokia have decided to come to an agreement. In May this year they have become business partners. Part of the settlement was a one-time transfer as compensation for Nokia’s patents used by Apple without licensing. So far we did not know this amount.