Apple to Make Huge Cash Payment to Nokia

Apple to Make Huge Cash Payment to Nokia
Apple has agreed to pay for Nokia's patented mobile phone technology after a legal challenge.

(CCM) — Apple has caved in to a legal challenge from Nokia, who is alleging that the iPhone maker has used Nokia technology without permission, according to a BBC report. Nokia launched a legal case against Apple in December, claiming it had breached 32 technology patents covering displays, user interfaces, and video encoding, according to the report. Apple has now agreed to make a cash payment to Nokia in return for permission to use the technology, in addition to agreeing to stock Nokia health products in Apple Stores.

Specific details of the payment have not been made public, but it is likely to be substantial, according to Keith Mallinson, an industry analyst at Wiseharbor quoted in the report. "The agreement is per year, so it's probably in the hundreds of millions of dollars range," he said. "That's partly because it covers many patents, and Nokia has some very important ones. They were one of the pioneers of cellular standards."

Apple made an estimated $140 billion in iPhone sales last year, so even a royalty of a fraction of 1% would be significant.

The two companies have a history of legal disputes over mobile phone patents dating back to 2009, when Nokia was the world's biggest mobile phone company.

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