Apple pays Nokia on-going royalties. Nokia has a new revenue stream.
Struggling Nokia has some good news to announce today. Nokia and Apple have reached a settlement on their long running patent litigation. The financial structure of the agreement consists of a one-time payment payable by Apple and on-going royalties to be paid by Apple to Nokia for the term of the agreement. The specific terms of the contract are confidential.
"We are very pleased to have Apple join the growing number of Nokia licensees," said Stephen Elop, president and chief executive officer of Nokia. "This settlement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market."
Nokia's very long history of being in the mobile phone business and driving many of its innovations will continue to pay off for them. Still, all eyes are on their smartphone strategy and if the budding up with Microsoft will get them back into the game.
Nokia is supposed to lose the number one spot in the smartphone sales ranking this quarter to Samsung.