Apple's Nokia settlement includes $2B up-front cash payment

Posted:
in General Discussion
Nokia's second-quarter results were improved by a recent 1.7 billion euro ($2 billion) cash payment from Apple, helping to settle the two companies' patent fight, according to a report.




Just a part of that amount was recognized in the quarter, said Nokia, which confirmed the source of the income with Nokiamob. Apple and Nokia reached a settlement over patent licensing issues in May -- an "up-front cash payment" was mentioned at the time, but the exact amount was unknown.

The settlement also includes continuing royalty payments from Apple, and -- unusually -- business deals in which Nokia will provide Apple with network infrastructure products and services. Apple also recently put Nokia health gear back on sale, having removed it during legal battles.

Nokia generated some $6.6 billion in revenue during the last quarter, but about $517.3 million in profits.

Apple is still engaged in a major legal dispute with Qualcomm over $1 billion in rebates, as well as claims that the latter abuses its market position to demand high royalties and force chip buyers to sign patent licenses. It's also dealing with a host of other legal matters, including a recent court judgment that it owes $506 million for violating a patent held by the Wisconsin Alumni Research Foundation.

Comments

  • Reply 1 of 13
    gatorguygatorguy Posts: 23,304member
    sog35 said:
    Ridiculous.

    I don't approve Apple spending my money like that
    They're not spending your money like that. As I recall it you said you sold all your Apple stock a few weeks ago, and even IF you still had some of their stock Apple didn't get any of the money you spent on purchasing it anyway. Some other investor got your money sans a few fees.
    edited July 2017 dasanman69SpamSandwichnetmage
  • Reply 2 of 13
    macxpressmacxpress Posts: 5,190member
    sog35 said:
    Ridiculous.

    I don't approve Apple spending my money like that
    I don't recall Sog being on Apple's bank account...You have very little if any say in what Apple wants to spend its money on. 
    mwhiteSpamSandwichnetmage
  • Reply 3 of 13
    mwhitemwhite Posts: 275member
    sog35 said:
    Ridiculous.

    I don't approve Apple spending my money like that
    sog35 is Ridiculous...
    singularitySpamSandwichnetmage
  • Reply 4 of 13
    avon b7avon b7 Posts: 5,959member
    sog35 said:
    Ridiculous.

    I don't approve Apple spending my money like that
    Would you approve if this agreement meant the elimination of unknown amounts being paid to Nokia (but far in excess of this agreed sum) as a result of a court process?

    That is possibly the case if Apple has agreed an upfront payment and continuing royalties.

    It's not like they don't have the cash to hand.

    They probably saw it as the least bad option.
  • Reply 5 of 13
    Wasn't Nokia called as "Patent Troll" in this forum not so long ago? If this development is true, was the criticism on Nokia really fair?
  • Reply 6 of 13
    macxpressmacxpress Posts: 5,190member
    Wasn't Nokia called as "Patent Troll" in this forum not so long ago? If this development is true, was the criticism on Nokia really fair?
    Nobody here ever said they agreed with the ruling in this thread. 
    netmage
  • Reply 7 of 13
    Hassan02812269Hassan02812269 Posts: 1unconfirmed, member
    Nokia is floating on patents' sea. Nokia current market cap is $40 billion, which makes it a very very big company. The company is going to be a very giant soon. Current Nokia's cash reserve is $14 billion and ZERO debt. I hope they can support HMD Global and concur the smartphone arena again. They can, absolutely!
  • Reply 8 of 13
    k2kwk2kw Posts: 2,056member
    Wasn't Nokia called as "Patent Troll" in this forum not so long ago? If this development is true, was the criticism on Nokia really fair?
    It is par for the course here.   I expect Q
    ualcomm to win too.   
  • Reply 9 of 13
    SpamSandwichSpamSandwich Posts: 33,407member
    Nokia making a big comeback!  /s
    watto_cobra
  • Reply 10 of 13
    brucemcbrucemc Posts: 1,541member
    Nokia making a big comeback!  /s
    Nokia now is mostly a telecommunications network equipment vendor, with the noted patent licensing business (Microsoft purchased the handset business and licenses to the IP, but not the IP itself), as well as the Withings medical device business. They do not compete with Apple in any meaningful way (they do license the Nokia brand to an Android vendor, but that is it). 

    Apple and Nokia can have a good business arrangement that benefits both. 
    ronn
  • Reply 11 of 13
    ronnronn Posts: 461member
    brucemc said:
    Nokia making a big comeback!  /s
    Nokia now is mostly a telecommunications network equipment vendor, with the noted patent licensing business (Microsoft purchased the handset business and licenses to the IP, but not the IP itself), as well as the Withings medical device business. They do not compete with Apple in any meaningful way (they do license the Nokia brand to an Android vendor, but that is it). 

    Apple and Nokia can have a good business arrangement that benefits both. 
    Exactly! That's what this settlement is all about. Continuing a mutually beneficial business arrangement. How that translates to a "win" for Nokia against Apple is laughable. Nokia gets patent royalty payments that had been suspended and increased business on a different front while Apple gets rid of nuisance suits via PAE that Nokia collaborated with.
  • Reply 12 of 13
    My guess is that Apple's lawyers were confident that they wouldn't win. Which means that the 2 billion is probably less than Apple would have needed to pay if they lost. Besides it's not as if Nokia is a real competitor anymore. HMD is licensing their name to make entry level Android devices. But Nokia is not a company that Apple needs to fight. And while 2 billion seems like a lot to ... almost anyone. To Apple it's less than 1& of it's cash on hand. Plus they probably used money that's outside the US that they're having trouble figuring out what to do with.
    netmagewatto_cobra
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