Apple Inc. (NASDAQ:AAPL) made a $2 billion upfront payment in the second quarter as it sought to end an ugly dispute over patents involving Nokia Oyj (ADR) (NYSE:NOK). The payment settles claims that the iPhone maker infringed on the Finish Company’s 32 patents.
Patent Infringement Standoff
Apple is yet to issue a statement regarding the payment. However, Nokia in a recent regulatory filing has confirmed receiving the amount which it says will strengthen its balance sheet.
“We got a substantial upfront cash payment of €1.7 billion from Apple, strengthening further our cash position. As said earlier, our plan is to provide more details on the intended use of cash in conjunction with our Q3 earnings,” said Kristian Pullola Nokia chief financial officer.
The colossal amount is a drop in the ocean for the tech giant given that its cash balance currently stands at record highs of $256 billion.
The payment comes a year after Nokia sued the tech giant in Europe and the U.S for using its patents without permission. Apple hit back with its own lawsuit and later withdrew a good number of the Finish Company’s products from its web store.
Apple-Nokia Relationship
The patents in question relate to technologies on software, video coding, chipsets, display, and antennae. In the lawsuits, the Nokia acknowledged that Apple had agreed to a licensing deal for some patents but declined to license some, most of which found their way into iOS products.
Nokia expects the settlement to help strengthen its relationship with Apple as well as its networking a digital health business units. The two companies are believed to be in discussions about the possibility of collaborating on technologies, research, and development instead of having to sign normal patent licensing deals.
Nokia’s patent settlement comes days after the iPhone maker was hit with a $506 million bill in another patent infringement lawsuit, involving the University of Wisconsin. The tech giant has confirmed plans to appeal the jury verdict.
Apple stock was down by 0.70% in Friday’s trading session to end the day at $149.50 a share.
