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
46 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
46 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
46 months ago
Why innovate when you can just steal? Bad apple
Score: 9 Votes (Like | Disagree)
Rettun1 Avatar
46 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
46 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
46 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)

Top Stories

lg wing

LG Considering Exit From Smartphone Business, Halts LCD Production for iPhone

Wednesday January 20, 2021 5:38 am PST by
LG is considering exiting the smartphone business entirely amid declining shipments and accrued losses of $4.5 billion over the past five years (via The Korea Herald). LG CEO Kwon Bong-Seok cautioned staff earlier today that the company is re-evaluating its presence in the smartphone industry: Since the competition in the global market for mobile devices is getting fiercer, it is about...
google maps detailed street level e1611052089473

Google Maps Gains Enhanced Street-Level Detail in Four Major Cities

Tuesday January 19, 2021 2:34 am PST by
Google Maps has quietly been updated to include significantly more detailed street-level information in a handful of key cities around the world. Upon zooming in, Google's maps for Central London, Tokyo, San Francisco, and New York now benefit from shapes and widths that match the scale of roads more accurately. Meanwhile, enhanced graphical representations of sidewalks, crosswalks,...
2019 mac pro side and front

Tim Cook Gifted Donald Trump 'First' 2019 Mac Pro

Wednesday January 20, 2021 5:45 pm PST by
Apple CEO Tim Cook gifted former United States President Donald Trump with the first 2019 Mac Pro that came off of the assembly line in Austin, Texas, according to a financial disclosure report that was released today (via The Verge). "Mac Pro Computer, the first created at the Flex Factory in Austin, Texas," reads the entry, which values the machine at $5,999, the base price for a Mac Pro....
airpods max sim ejector

AirPods Max Headband Removable With Just a SIM Ejector Tool, Hinting at Interchangeable Headbands

Tuesday January 19, 2021 8:25 am PST by
It is possible to remove the headband of AirPods Max with just a standard SIM card ejector tool, hinting at the possibility of interchanging headbands to achieve a different colorway. Image via Prelook In December, MacRumors revealed the large variety of AirPods Max ear cushion color combinations when it became clear that they were magnetically attatched and available for sale separately....
iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
iphone 12 vs iphone 12 mini

Apple Shifting Some Production From iPhone 12 mini to iPhone 12 Pro to Meet Demand

Wednesday January 20, 2021 8:12 am PST by
Apple has reportedly cut production of the iPhone 12 mini by two million units to create more manufacturing capacity for the iPhone 12 Pro, according to a new Morgan Stanley investment note seen by PED30. Apple is believed to have made the switch for the first quarter of 2021 in an effort to combat continuing lead times for the more popular iPhone 12 Pro. iPhone 12 Pro lead times remain ...
Apple VR Feature

Bloomberg: Apple's First AR/VR Headset 'Pricey, Niche Precursor' to More Ambitious AR Glasses and Could Launch Next Year

Thursday January 21, 2021 3:27 am PST by
Apple's first virtual reality headset will be a "pricey, niche precursor" to a more ambitious augmented reality product, according to a new report from Bloomberg's Mark Gurman. As a mostly virtual reality device, it will display an all-encompassing 3-D digital environment for gaming, watching video and communicating. AR functionality, the ability to overlay images and information over a view...
shot on iphone 12 apple

Apple Highlights Photos Shot by iPhone 12 Users: Portraits, Cityscapes, and More

Tuesday January 19, 2021 6:05 am PST by
Apple today shared a gallery of photos shot by customers using the iPhone 12 mini, iPhone 12, iPhone 12 Pro, and iPhone 12 Pro Max, with scenes including cityscapes, landscapes, portraits of people, and more at day and night. Shot on iPhone 12 Pro Max by "NKCHU" in China (top) and shot on iPhone 12 Pro Max by Rohit Vohra in India (bottom) iPhone 12 mini and iPhone 12 models have a dual camera ...
Apple and Hyundai feature

Apple Car Production Again Linked to Kia Motor's US Plant in Georgia

Tuesday January 19, 2021 4:19 am PST by
Hyundai intends to transition the company's Apple Car involvement to its Kia brand as part of an internal arrangement that could see production move to the U.S., according to a new report today. On Sunday, Korea IT News reported that Apple and Hyundai are seeking a partnership agreement for the upcoming Apple Car by March, and that the electric vehicles could be made at a Georgia factory...
iPhone 13 Notch Feature

iPhone 13 Rumored to Feature Smaller Notch, Pro Model Cameras to Use Larger Image Sensor

Thursday January 21, 2021 1:38 am PST by
Apple's iPhone 13 series will feature a redesigned Face ID system that will allow for a smaller notch at the top of the screen, according to a new report today. The rumor comes via hit-and-miss Taiwanese industry publication DigiTimes, whose supply chain sources also claim that the ultra wide-angle lens in Apple's next-generation iPhones is due for an upgrade. The next-generation iPhones'...