Nokia says end of legal battle over patents is expected to provide boost to Q2 results following profit warning
Apple has agreed to pay Nokia a one-off undisclosed sum and on-going royalties after settling a long-running patent dispute relating to the iPhone and iPad.
Nokia said the settlement is expected to provide a boost to Q2 results at its Devices & Services arm, which earlier this month issued a profit warning saying it expected to break even during the current quarter, and announced it would not be providing forecasts for the remainder of 2011.
“This settlement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market,” said Nokia CEO Stephen Elop (pictured).
The firm’s shares rose more than 4 per cent on Finnish markets following news of the settlement, but still remained well below the levels prior to the price plunge which followed the profit warning earlier this month.
Nokia first brought the suit alleging infringement of 10 patents against Apple in 2009, and has since added additonal claims bringing the total number of patents it claimed the firm is infringing up to 46.
Nokia claims to have spent €43 billion on research, and hold more 10,000 patent “families”.