The patent war between Apple and Nokia has finally come to an end. Cupertino-based Apple has paid a whopping $2 billion to Nokia to settle the patent dispute. This amount is paid in light of the patent violation cases that Nokia had filed against Apple.
Nokia‘s cash flow for the second quarter is reflecting part of Apple‘s $2 billion payment. Thanks to that, Nokia has shown significant cash inflow. Going back to as old as 2009, Nokia sued Apple for violating as many as 10 patents, covering GSM, UMTS and WLAN standards.
With over $2 billion of patent settlements paid from Apple to Nokia, the brands are back to business. Apple would now continue to carrying Nokia’s digital health products. The Nokia digital health products have items like Heart health & body composition WiFi scale, Smart Thermometer and so forth.
The Nokia-Apple Patent War
Going back in history, the Nokia-Apple patent dispute started as early as 2009. Nokia sued Apple for violation of 10 patents initially. Some of these patents were considered essentials for the GSM, UMTS and WLAN standards. Nokia also claimed to be licensing these essentials under Fair, Reasonable and Non-Discriminatory (FRAND) Terms.
The case stated that some of these essential standards developed by Nokia were used in the Apple iPhone. So Nokia went forward to claim royalties from the Cupertino giant. After the rapid escalation of dispute, Apple finally decided to put an end to this with an undisclosed amount to Nokia as damages.
The war resumed in 2016 when Apple filed an antitrust complaint against Nokia, for conspiring to ‘diffuse and abuse’ Standard Essential Patents. To this, Nokia responded by alleging Apple for violating over 40 patents, including that of the Power Management technology used in Apple’s various products.
It was these cases that Apple has now settled for 1.7 Billion Euros to Nokia. With this fresh start, Nokia Digital Health Products are back with Apple. Nokia also learned a big lesson from its market share loss, as they were engaged in legal battles with Apple.
Also, Apple will continue to pay royalties to Nokia (no mention about FRAND terms) for certain patents. With huge amounts pouring in from Apple and fresh deals with Xiaomi and Carl Zeiss, Nokia seems to be making a comeback in the market.