21 Aug Apple paid Nokia $2 billion to avoid going to court
Apple’s latest patent spat with Nokia resulted in a $2 billion up-front payment from the iPhone maker, a colossal sum that seems to indicate Apple was eager to avoid a protracted and ugly dispute that could rival the one it had with Samsung.
The lawsuit began last year when Nokia accused Apple of infringing on dozens of patents it owns, as well as patents owned by Nokia subsidiaries. Given Nokia’s storied history in the phone market, many smartphone makers license the company’s patents for everything from display technology to antenna design. Apple has had a licensing deal with Nokia in place since 2011, after the two settled their last patent dispute. But Apple reportedly did not want to sign a new deal and accused Nokia of seeking unfair terms.
The two settled in May, striking new licensing terms and agreeing to a joint effort to explore “future collaboration in digital health initiatives.” We don’t know exactly what Nokia plans to do with the $2 billion it has in the bank. For Apple, however, it’s probably not going to hurt its bottom line: the iPhone maker reported earlier this year that it has more than a quarter-trillion dollars in cash and investments, much of it sitting outside the US because it cannot currently be repatriated without paying what Apple sees as unfavorable corporate taxes.
It is clear that it is worth protecting your innovative technologies!
Source: https://www.theverge.com/2017/7/28/16058868/apple-nokia-patent-dispute-settlement-2-billion-dollars