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How Much Could Nokia’s Settlement with Apple Impact Revenue?

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Nokia’s patent infringement case against Apple

In May 2017, Nokia (NOK) and Apple (AAPL) settled a dispute in which the former had accused the iPhone manufacturer of patent infringement in 11 countries including the United States (SPY) and Germany (EWG). Nokia wanted Apple to pay for the technology Apple used in its smartphones and tablets.

In December 2016, Nokia’s patent head Ilkka Rahnasto stated: “Nokia has created or contributed to many of the fundamental technologies used in today’s mobile devices, including Apple products. After several years of negotiations trying to reach an agreement to cover Apple’s use of these patents, we are now taking action to defend our rights.”

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New patent agreement signed

Nokia and Apple have signed a new patent agreement wherein Apple will pay royalties from calendar 2Q17. The financial terms of the agreement were undisclosed.

The two firms signed another contract in which Apple has agreed to sell Nokia’s digital health devices in its retail and online stores. Nokia, in return, will provide network infrastructure services to Apple.

Nokia’s patent and licensing revenue is a part of its Nokia Technologies business segment. In 1Q17, revenue from the Nokia Networks business rose 25% YoY (year-over-year) to 247 million euros, driven by the Withings acquisition and income from patents.

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