The relationship between Nokia Inc. and Apple Inc. has taken a new turn after the two technology giants agreed to settle a seven-year-old dispute and corporate in the foreseeable future. This agreement comes after Apple Inc. was sued by Nokia 7 months ago for breaching approximately 32 patents that belonged to Nokia. Some of the patents that Apple had been accused of interfering with include video encoding patents, user interfaces patents as well as display patents. The new deal between these two companies gives Apple the right to use these technologies. However, they will have to pay Nokia a certain amount of cash that must be paid up-front. In part of the agreement, Apple agreed to sell some health products from Nokia in its retail stores.
However, as expected, these giants did not reveal the financial details of the agreement. However, experts specializing in patent disputes between technology companies have revealed that this deal between Nokia and Apple could be worth millions of dollars. With the deal expected to last several years, Nokia will receive huge sums of money on a yearly basis. For this reason, the deal could have cost or will have cost Apple over hundreds of millions. Furthermore, the deal is suspected to be expensive considering that Nokia was the pioneer when it comes to cellular standards and for this reason, they own many patents. In the year 2016 alone, apple is said to have made over $140 billion from the sale of iPhones. The significance of this figure is to show what Nokia is in for. If they were given a 1 percent of the sales royalty, they could end up with hundreds of millions of dollars.
Representatives of these companies said that they were looking forward to working together. As for Nokia, their representative said that they looked forward to supporting Apple while an Apple representative by the name Jeff Williams said that the company had been relieved that the dispute had finally been settled. The two companies have been in and out of courts contesting a breach of patents since the year 2009. The major complainant in these battles has been Apple. Despite the battles and competition from other manufacturers, Nokia remains the leading manufacturer of phones around the world.