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Apple surrenders and agrees to pay Nokia

by on31 July 2017

Pays $2 billion that it owed.

It appears that all that rubbish that Apple spouted about the former rubber boot maker Nokia was completely untrue and the fruity-cargo cult has written a cheque for $2 billion dollars to provide the Finns with the money they are owed.

For those who came in late, Jobs Mob Apple took legal action against Acacia Research and Conversant Intellectual Property Management, accusing them of colluding with Nokia to extract and extort exorbitant revenues unfairly from Apple.

"We’ve always been willing to pay a fair price to secure the rights of patents covering technology in our products," Apple spokesman Josh Rosenstock said at the time 

"Unfortunately, Nokia has refused to license their patents on a fair basis and is now using the tactics of a patent troll to attempt to extort money from Apple by applying a royalty rate to Apple’s own inventions they had nothing to do with."

Basically it looked like Apple thought this was a legal battle it was not going to win and gave up.

The new details of the settlement, which was first announced back in May without the disclosure of a financial amount or the new licensing terms, were spotted in Nokia’s second quarter earnings release by the blog Nokiamob.

“We got a substantial upfront cash payment of €1.7 billion from Apple, strengthening further our cash position. As said earlier, our plans is to provide more details on the intended use of cash in conjunction with our Q3 earnings,” reads the official transcript of Nokia’s quarterly earnings call with investors yesterday.

Neither Nokia nor Apple have disclosed the terms of the new licensing deal, including whether it involves recurring payments or how many years it will be in place.

The lawsuit, the second high-profile patent dispute between Apple and Nokia in the last decade, began last year when Nokia accused Apple of infringing on dozens of patents it owns, as well as patents owned by Nokia subsidiaries. Given Nokia’s storied history in the phone market, many smartphone makers license the company’s patents for everything from display technology to antenna design. Apple has had a licensing deal with Nokia in place since 2011, after the two settled their last patent dispute.

But Apple reportedly did not want to sign a new deal. It seems to be following a policy of trying to bully all its suppliers to take pay cuts so it can continue to make huge profits from its dying iPhone cash cow. It accused Nokia of seeking unfair terms which in Apple-speak is any terms which require it to pay money to the real inventors.

After Nokia filed suit in multiple countries, Apple went after the patent entities that were suing for more settlement and royalty money on Nokia’s behalf with an antitrust suit. That prompted Nokia to sue Apple directly. The dispute got ugly, with Apple briefly pulling Nokia-owned Withings’ products from its online store and from Apple Stores worldwide.

The two settled in May, striking new licensing terms and agreeing to a joint effort to explore “future collaboration in digital health initiatives.” We don’t know exactly what Nokia plans to do with the $2 billion it has in the bank.

For Apple, however, it’s probably not going to hurt its bottom line: the iPhone maker reported earlier this year that it has more than a quarter-trillion dollars in cash and investments, much of it sitting outside the US because it cannot currently be repatriated without paying what Apple sees as unfavourable corporate taxes because the US government is also not doing what it is told.


Last modified on 31 July 2017
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