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Apple paid $2 billion cash to Nokia

Apple paid $2 billion cash to Nokia
After a patents row that escalated between Nokia and Apple in December last year and was settled in May, Nokia has received a $2 billion upfront cash payment from Cupertino-based tech company as part of the settlement terms.

The new details of the settlement, which was first announced back in May without the disclosure of a financial amount or the new licensing terms, were spotted in Nokia’s second quarter earnings release by the blog Nokiamob.

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Talking about the settlement, Nokia said during its earnings report, “We got a substantial upfront cash payment of €1.7 billion from Apple, strengthening further our cash position.”

Elaborating the statement Nokia Said "Instead of a simple patent licensing agreement, we have agreed on a more extensive business collaboration with Apple, providing the potential for a meaningful uplift in our IP routing, optical networks, and digital health business units over time. Hence, the value of the agreement will be reflected partly as patent licensing net sales in Nokia Technologies, and partly as net sales in other Nokia business groups."

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The two companies filed lawsuits against each other last December after failing to reach an agreement on patent licensing payments. Nokia said it spent years trying to reach an agreement, while Apple said Nokia was asking for payments that were too high.

More than 30 patients were involved in the lawsuits covering technologies in Apple’s mobile devices going back as far as the iPhone 3GS. Apple had been paying licensing fees for Nokia’s patents but failed to reach a new agreement when the earlier contract expired.

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