backtop


Print 8 comment(s) - last by TakinYourPoint.. on Jun 14 at 6:43 PM


Nokia CEO Stephen Elop
Enter patent license agreement in which Apple pays Nokia

It was just yesterday when we reported that a Japanese market research firm predicts Apple will surpass Nokia in global market share by the end of this year. Against that backdrop, along with the rest of the mounting bad news coming from the Nokia camp, it's especially interesting to learn that Nokia and Apple have settled their ongoing patent dispute and have entered a patent license agreement.

The news was announced this morning via an official press release from Nokia. "We are very pleased to have Apple join the growing number of Nokia licensees," said Nokia CEO Stephen Elop. "This settlement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."

The settlement comes after years of grappling in court. Nokia first filed a lawsuit against Apple alleging patent infringement in October of 2009. The judge sided with Apple in that case, but Nokia filed another suit earlier this year alleging that Apple also infringed on seven patents related to multi-tasking operating systems, data synchronization, positioning, call quality, and the use of Bluetooth accessories it holds. In response, Apple filed its own countersuit.

But in the settlement announced today, Nokia appears to be the clear winner. Apple will make a one-time payment to Nokia and continue to pay on-going royalties for the term of the agreement. The specific terms of the contract are confidential and were not disclosed. 

The settlement puts to rest all complaints that either company has against the other with the U.S. International Trade Commission.

It is also expected to have a positive impact on Nokia's recently revised Q2 2011 profit outlook.


Comments     Threshold


This article is over a month old, voting and posting comments is disabled

By TakinYourPoints on 6/14/2011 6:43:27 PM , Rating: 2
It is becoming more clear who is losing: other handset manufacturers.

Quote from an article I just read:

quote:
Other companies, notably Android handset manufacturers, may now have to play ball with Nokia on these patents -- and they don't necessarily have the margins to send 1% of gross revenues to Nokia as easily as Apple can. In fact, because Apple has so many of its own patents (some of which it cross-licensed to Nokia) other manufacturers may have to pay even more for the same licenses.

Florian Mueller has suggested just that at FOSS Patents:
"Given that Android is in many ways a rip-off of Apple's operating software, Android-based devices are highly likely to infringe on largely the same Nokia patents that Apple now felt forced to pay for.
[...]
This is a sweet defeat for Apple because its competitors -- especially those building Android-based devices -- will also have to pay Nokia, and most if not all of them will likely have to pay more on a per-unit basis because they don't bring as much intellectual property to the table as Apple definitely did."

Apple pays off Nokia, but exposes the competition as well. Competition that doesn't have as much money or intellectual property to barter with.


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki