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Apple paid Nokia $2 billion to settle patent spat

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Apple and Nokia were all set for a years-long spat over patent disputes after the two sued each other across multiple countries back in December 2016. However, the companies amicably settled their differences back in May this year when the former decided to bury the hatchet and pay a cash settlement.

The details of this quick turnaround weren’t disclosed at the time. That’s at an end now thanks to Nokia’s recent earnings call where it revealed that Apple had paid it €1.7 billion upfront. That translates to approximately $2 billion, quite a hefty amount.

Nokia is also planning to go beyond a simple patent licensing agreement with Apple by working out a more extensive business collaboration with the latter. Specific areas of interest include Optical Networks, IP Routing, and Digital Health.

Also Read: Apple ordered to pay $506 million in patent dispute

The last one is of particular interest. To recall, Apple had pulled Withings, a Nokia-owned subsidiary, products from its shelves in December 2016 when the lawsuit battle had just begun. It later brought back those devices after it brokered peace with the Finnish company.

Apple usually doesn’t go down without a fight when it comes to patent disputes, so it was very surprising when it decided to back off and jump into a partnership with Nokia instead. It’s possible the Cupertino-based brand wanted to avoid a protracted court battle that could have costed it much more than $2 billion.

The possibility of a Nokia-Apple product sounds pretty exciting, but we’ll have to wait and see if anything comes out of the collaboration.