HELSINKI: Nokia has settled its legal battle with Apple with a new patent license agreement and also signed a business deal with the US giant, surprising investors who had expected the dispute to drag on.
The companies said on Tuesday that Nokia would receive an upfront cash payment and additional revenues from Apple starting from the current quarter, without giving details. Analysts said the revenue was likely to be far higher than a previous deal.
Nokia shares, which fell in December when the patent dispute was announced, jumped as much as 8 percent to their highest since February 2016 and were 6.5 percent higher at 5.88 euros by 0848 GMT.
“We are pleased with this resolution of our dispute and we look forward to expanding our business relationship with Nokia,” Apple Chief Operating Officer Jeff Williams said in a joint statement from the companies.
A previous patent license contract between the companies expired last year, and both sides took legal action in December. Apple complained of being overcharged and Nokia responded by accusing Apple of violating technology patents.
In the absence of a new deal, Nokia cut its annual run-rate forecast in December for patent and brand licensing sales to 800 million euros ($900 million) from 950 million euros previously. In its latest quarterly report released in April, Nokia stopped giving an annual run-rate forecast altogether.
“(The agreement) moves our relationship with Apple from being adversaries in court to business partners,” Nokia’s Chief Legal Officer Maria Varsellona said in a statement.