Apple settles with Nokia over ongoing patent dispute

Settled: Steve Jobs' technology giant has finally come to an agreement with Finnish rival Nokia
11 April 2012

Troubled mobile phone maker Nokia has today ended a legal battle with Apple over patent disputes, with Steve Jobs' computing giant paying an undisclosed one-off fee and ongoing royalties to the Finnish firm.

The two firms have been locked in a legal battle since October 2009, when Nokia sued Apple in the United States, arguing the iPhone-maker was getting a "free ride" on technologies patented by Nokia.

"Apple and Nokia have agreed to drop all of our current lawsuits and enter into a license covering some of each others' patents, but not the majority of the innovations that make the iPhone unique," said an Apple spokesman.

Nokia said the deal - which includes settling all litigation between the two and withdrawal of both sides complaints to the U.S. International Trade Commission - would boost its profits in the second quarter of the year. That will be a much-needed boost for a company that has been left behind in the market by Apple, Samsung and others.

Legal battles have become increasingly common in the cellphone industry since Apple and Google carved out a large chunk of the lucrative and quickly expanding smartphone market at the expense of older players.

On May 31 Nokia warned on second quarter sales and profits, while abandoning hope of meeting key targets just weeks after setting them, raising questions over whether its new CEO Stehen Elop can deliver on the turnaround he promised.

Nokia has lost initiative in the smartphone market to Apple's iPhone and Google Inc's Android devices, and at the lower end to more nimble Asian rivals.

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