Apple Begins Paying $2 Billion in Cash to Nokia as Part of Lawsuit Settlement

Nokia disclosed its financial results for the second quarter of 2017 this week, and within the results the company mentioned that it received an "up-front cash payment" of approximately €1.7 billion ($2 billion), part of which was said to be recognized during the Q2 2017 results. Nokiamob then reached out to Nokia, and the company confirmed that the cash payment came from Apple.

The payment is part of a settlement agreement reached between Apple and Nokia in May of this year, regarding a lawsuit began by Nokia in December 2016. In the original lawsuit, Nokia sued Apple in the United States and multiple other countries, with a complaint that stemmed from a disagreement between the two companies over licensing fees for Nokia technology.

nokialogo
The legal battle continued to escalate as Apple responded with its own antitrust lawsuit against Nokia. In Apple's claims, the company said that Nokia was transferring patents to patent holding entities in a bid to gain additional royalties from Apple, violating FRAND (Fair, Reasonable, and Non-Discriminatory) deals Apple had established with Nokia.

In the settlement news this past May, the companies agreed to a multi-year patent license deal, where Nokia would provide "certain network infrastructure products and services" to Apple, and Apple would then return all Nokia-owned health products to Apple retail and online stores.

In regards to the $2 billion payment from Apple, Nokia said it would disclose its plans for the money in its Q3 earnings later this year.

Second, we got a substantial upfront cash payment of €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.

Nokia Technologies led the way, with sales up 90% versus the same period last year. That was largely, but not completely, driven by our recently-announced agreement with Apple; and you can also see the impact of that agreement in our cash position.

So far, Apple has only partially paid the $2 billion cash sum to Nokia, so besides finishing that payment, Apple will also continue to pay royalties to the company during the term of the agreement.

Tag: Nokia

Top Rated Comments

eldervovichka Avatar
49 months ago
Wasn't this the law suite, where Apple was paying for the royalties, but stopped because Nokia was over charging. Apple said we will pay if you charge fairly. The settlement is just the back payments as they reached the agreements on the new fees going forward. They really did not rip Nokia off, if I am remembering it correctly.
Score: 11 Votes (Like | Disagree)
Nr123*123 Avatar
49 months ago
Nokia needs to make its year end quota somehow.
Yep, by claiming money that's rightly theirs.
Score: 9 Votes (Like | Disagree)
Sefstah Avatar
49 months ago
Why innovate when you can just steal? Bad apple
Score: 9 Votes (Like | Disagree)
Rettun1 Avatar
49 months ago
Wow... Apple's paying the billions left and right.

If they continue this way they'll be bankrupt pretty soon.
Lulz yea rite?

Even if they had to pay a settlement like this every year, their current cash hoard allows them to do it for 128 years.

“pretty soon”
Score: 7 Votes (Like | Disagree)
OldSchoolMacGuy Avatar
49 months ago
Does this mean that apple is a bigger thief than Samsung since Samsung only had to pay 1 billion for stealing from apple?
Means that Apple made far far more money off their infringing devices than Samsung did. Had Apple only sold say 1 million iPhones, they'd only have had a payment of around $10k.
Score: 7 Votes (Like | Disagree)
Nunyabinez Avatar
49 months ago
Picasso
Yes, Picaso was credited with it, but the correct phrase is "good artists copy, great artists steal"

And almost everyone misinterprets the idea. It was not meant to say that people take other's work and claim it as their own, that is plagiarism or theft.

The idea is that an artist starts by experimenting a with the styles of previous artists, and when something works for them they permanently incorporate it into their own unique style which become a totally new style made up of a synthesis of previous ideas, which new artists then are influenced by.

And calling coders artists is totally B.S. (no offense to coders). And while SJ did say it, people are always using it out of the context that even he was using it.
Score: 7 Votes (Like | Disagree)

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