Nokia announced that it has signed a patent license
agreement with Apple. The agreement will result in settlement of all patent
litigation between the companies, including the withdrawal by Nokia and Apple
of their respective complaints to the US International Trade Commission.

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.”

During the last two decades, Nokia has invested
approximately EUR 43 billion in research and development and built one of the
wireless industry’s strongest and broadest IPR portfolios, with over 10,000
patent families.  

This agreement is expected to have a positive financial
impact on Nokia’s recently revised outlook for the second quarter 2011 of
around break-even non-IFRS operating margin for Devices & Services.

By TelecomLead.com Team
[email protected]