Apple And Nokia Reach Settlement, Nokia Fist Pumps To The Bank
Nokia and Apple have finally reached an agreement that will settle an ongoing legal dispute over patent violations. Under the terms of the agreement Apple will pay Nokia an undisclosed one time payment as well as ongoing royalties.
While the International Trade Commission initially ruled Apple did not infringe on Nokia's patents, later in April the ITC voiced its support for Nokia, creating a setback for Apple. Per the settlement, both companies have withdrawn their complaints from the ITC.
While the financials of the settlement will likely remain tight-lipped, the one time payment is expected to be in the hundreds of million of dollars with the ongoing royalty payments to be as much as 4 Euros an iPhone according to Tero Kuittinen of MKM Partners. Kuittinen expects Nokia to get between 1 and 2 percent of iPhone revenue filtered their way.
Investors will get a clearer picture of how much money exchanged hands when Nokia's 2nd quarter earnings go public.