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Home News Apple settled patent lawsuit with Nokia for $2 billion in cash

Apple settled patent lawsuit with Nokia for $2 billion in cash


Apple paid $2 billion to settle a patent infringement lawsuit with European tech giant Nokia, which accused Apple of using 32 of its patents for iPhones, iPads and other devices.

Nokia disclosed the settlement worth 1.7 billion Euros, or $2 billion, in its Friday earnings call, first reported by the Nokia-focused blog Nokiamob.

“We got a substantial upfront cash payment of €1.7 billion from Apple, strengthening further our cash position,” said Nokia Chief Financial Officer Kristian Pullola. “As said earlier, our plan is to provide more details on the intended use of cash in conjunction with our Q3 earnings.”

In 2016, Nokia sued Apple in two different lawsuits. Nokia asked for “at least for reasonable royalties, unjust enrichment, and benefits received by Apple as a result of using misappropriated technology” in both suits, and they were to be tried in the U.S. Eastern District of Texas, famous for handling patent lawsuits.

The infringed patents were related to software, video coding, chipsets, display, UI and antenna. Some of them belonged to Nokia-owned companies such as NSN and Alcatel-Lucent.

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Nokia argued that Apple agreed in 2011 to a licensing deal to use certain Nokia patents but “declined subsequent offers made by Nokia to license other of its patented inventions which are used by many of Apple’s products.”

For Apple, the $2 billion cash payment is a drop in the bucket. The Cupertino company said in its most recent earnings report that it has $256 billion in cash, a new company record.

In May, Apple and Nokia called a truce and settled all litigation. As part of the agreement, Nokia provided “certain network infrastructure product and services” to Apple, and Apple continued carrying Nokia digital health products in Apple retail and online stores, according to an Apple press release.

Apple and Nokia also said they were exploring “future collaboration in digital health initiatives.” It was not disclosed how much Apple paid to settle with Nokia until Friday.

“We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia,” said Apple Chief Operating Officer Jeff Williams in the May press release.

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Earlier this week, Apple was embroiled in another patent infringement lawsuit. Apple saw its fine more than doubled to $506 million for infringing patents owned by the University of Wisconsin. Apple reportedly plans to appeal the original jury verdict, which ordered Apple to pay only $234 million.

Apple did not respond to a request for comment.

Photo: The Apple logo at the Yerba Buena Center for Arts in San Francisco in 2012. (Kimihiro Hoshino/AFP/Getty Images) 

Tags: Apple, lawsuit, nokia, Patents