Apple's Nokia settlement includes $2B up-front cash payment
Nokia's second-quarter results were improved by a recent 1.7 billion euro ($2 billion) cash payment from Apple, helping to settle the two companies' patent fight, according to a report.
Just a part of that amount was recognized in the quarter, said Nokia, which confirmed the source of the income with Nokiamob. Apple and Nokia reached a settlement over patent licensing issues in May — an "up-front cash payment" was mentioned at the time, but the exact amount was unknown.
The settlement also includes continuing royalty payments from Apple, and — unusually — business deals in which Nokia will provide Apple with network infrastructure products and services. Apple also recently put Nokia health gear back on sale, having removed it during legal battles.
Nokia generated some $6.6 billion in revenue during the last quarter, but about $517.3 million in profits.
Apple is still engaged in a major legal dispute with Qualcomm over $1 billion in rebates, as well as claims that the latter abuses its market position to demand high royalties and force chip buyers to sign patent licenses. It's also dealing with a host of other legal matters, including a recent court judgment that it owes $506 million for violating a patent held by the Wisconsin Alumni Research Foundation.
AppleInsider has affiliate partnerships and may earn commission on products purchased through affiliate links. These partnerships do not influence our editorial content.