Published on June 15th, 2011 | by Bilal Sulehri2
Nokia Agrees Deal With Apple to Receive Cash Boost
Apple have finally admitted defeat as it has settled a lawsuit with Nokia over use of intellectual propert rights in iPhone, it will now pay a huge sum of money to Nokia which is expected to result in some stability in Nokia’s financial results. The troubled Finnish cell phone giant and is American counterpart have not disclosed the exact amout of money which will be paid but Nokia claim that the amount is enough to leave a positive impact on its second quarter financial results.
Complaints filed to US International Trade Commission by both parties over breached technology patents will be withdrawn and all 46 cases closed as Nokia & Apple have reached an agreement.The news had an instant impact on stock markets as Nokia saw its share rise by 15 cents to $6.26 and Apple’s share rose by around 1.8% to $332.44 as the deal was announced.
A statement from Apple read:
“Apple and Nokia have agreed to drop all of our current lawsuits and enter into a license covering some of each other’s patents, but not the majority of the innovation that makes the iPhone unique’’
A statement from Nokia said:
“We are very pleased to have Apple join the growing number of Nokia licensees… This settlement demonstrates Nokia’s industry leading patent portfolio,” Nokia chief executive Stephen Elop said in the statement”
The interesting thing about this development is that Nokia had recently announced that it’s financials will be worse than expected in the second quarter, thid agreement not only boosts Nokia but also allows both companies to use each other’s patents in their phones. Another side of the picture is that gradually all major players are joining forces and competitors have suddenly become more hostile than ever for Google, as on one hand Nokia has agreed a deal with Microsoft which has acquired Skype and on the other hand it has resolved disputes with Apple.