Nokia has announced that its patent dispute with Apple has been resolved after the signing of a new multi-year patent license deal, making the companies allies once again.
It had been expected by some that the dispute would lead to a drawn out process, as opposed to this comparatively swift resolution, and Nokia is set to receive an upfront cash payment. This will be followed by revenues throughout the agreement.
The original dispute regarded the expiry of a contract between the two companies, which was followed by the accusation from Nokia that there had been a violation of technology patents on Apple’s part, while the iPhone giant argued it had experienced overcharging.
There was an immediate reaction on the stock market, as Nokia share prices rose rapidly upon the news of the new deal, recovering from a drop that was incurred by the dispute late last year.
Upwards movement of the Finnish company’s share price has brought it up to 5.93 euros; this equates to a 7.4 percent rise. This rapid movement of the share price is unsurprising, since the news meant a complete turnaround in the dynamic of the relationship between the two companies.
Nokia’s Chief Legal Officer Maria Varsellona said that the agreement “moves our relationship with Apple from being adversaries in court to business partners.”
Under the shadow of the dispute and the expiry of the contract, Nokia had reduced the annual run-rate forecast for patent and brand licensing sales by close to 150 million euros, down from an original figure of 950 million.
Now that the patent dispute has been relegated to the past, the companies have jointly expressed interest in potentially working together on new projects such as digital health initiatives.
Basil Alwan, president of Nokia’s IP/optical networks business, in another statement. “We look forward to supporting Apple… This agreement will strengthen our collaboration.”