After a match of patents between Nokia and Apple in December last year and was settled in May, Nokia has received a $2 billion upfront cash payment from Apple. The two sides announced the agreement in a joint statement yesterday, five months after they had sued each other over royalty payments.
Nokia has not yet disclosed what it plans to do with all this cash. The company suffered immensely at the hands of the iPhone, and no longer makes handsets after selling its mobile business to Microsoft in 2013. While most of its revenue comes from telecoms infrastructure, it is seeking to bolster income from the valuable patents it still retains from its days as the world’s dominant mobile phone company.
The dispute began last year when the tech giants locked horns over patents, with Apple filing an anti-trust lawsuit against third-party companies Patent Assertion Entities (PAEs) that act on Nokia's behalf, and the Finland-based firm suing Apple directly.
According to the Cupertino-based tech giant, Nokia was conspiring with PAEs patent assertion entities (Acacia Research and Conversant Property Management) in an "illegal patent transfer scheme" to wring money out of Apple because Nokia's cell phone business was failing.
Nokia also filed a suit directly against Apple in Europe and the US, claiming the company was still infringing on Nokia's patents. The lawsuit covered 32 patents, including display, user interface, software and video-coding technology.
Amid the escalating issues with Nokia, Apple had also pulled all products made by Withings, a French company and now a Nokia subsidiary, from Apple Stores, be it online or retail.