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BUSINESS
Making a payment of USD two billion, Apple settled their existing issues with Nokia to avoid mishap.
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Updated : Jul 29, 2017, 01:21 PM IST
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Tech giant Apple settled their existing issues over patents with Nokia by making a payment of USD two billion, indicating the iPhone maker's urge to avoid a controversy. The terms of the licensing deal, however, have not been revealed by any of the companies.
We got upfront cash payment of EUR 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 as reported by The Verge.
The legal dispute started when Apple was charged with violating over a dozen patents of Nokia and its subsidiaries. Even though Apple has a licensing deal with Nokia since 2011, the issue began when Apple refused to sign a new deal and blamed Nokia for requesting unjust conditions for renewal.
The two companies arrived at a settlement in May, agreeing on new licensing terms and consenting to a joint effort to explore future collaboration in digital health initiatives, as reported by The Verge.
