Apple Begins Paying $2 Billion in Cash to Nokia as Part of Lawsuit Settlement

[MacRumors]

Nokia disclosed its financial results for the second quarter of 2017 this week, and within the results the company mentioned that it received an "up-front cash payment" of approximately EUR1.7 billion ($2 billion), part of which was said to be recognized during the Q2 2017 results. Nokiamob then reached out to Nokia, and the company confirmed that the cash payment came from Apple.

The payment is part of a settlement agreement reached between Apple and Nokia in May of this year, regarding a lawsuit began by Nokia in December 2016. In the original lawsuit, Nokia sued Apple in the United States and multiple other countries, with a complaint that stemmed from a disagreement between the two companies over licensing fees for Nokia technology.

The legal battle continued to escalate as Apple responded with its own antitrust lawsuit against Nokia. In Apple's claims, the company said that Nokia was transferring patents to patent holding entities in a bid to gain additional royalties from Apple, violating FRAND (Fair, Reasonable, and Non-Discriminatory) deals Apple had established with Nokia.

In the settlement news this past May, the companies agreed to a multi-year patent license deal, where Nokia would provide "certain network infrastructure products and services" to Apple, and Apple would then return all Nokia-owned health products to Apple retail and online stores.

In regards to the $2 billion payment from Apple, Nokia said it would disclose its plans for the money in its Q3 earnings later this year.

Second, we got a substantial upfront cash payment of EUR1.7 billion from Apple, strengthening further our cash position. As said earlier, our plans is to provide more details on the intended use of cash in conjunction with our Q3 earnings.

Nokia Technologies led the way, with sales up 90% versus the same period last year. That was largely, but not completely, driven by our recently-announced agreement with Apple; and you can also see the impact of that agreement in our cash position.

So far, Apple has only partially paid the $2 billion cash sum to Nokia, so besides finishing that payment, Apple will also continue to pay royalties to the company during the term of the agreement.

Article Link: Apple Begins Paying $2 Billion in Cash to Nokia as Part of Lawsuit Settlement

 

[X--X]

Wow... Apple's paying the billions left and right.

If they continue this way they'll be bankrupt pretty soon.

 

[Sefstah]

Why innovate when you can just steal? Bad apple

 

[Shlooky]

Nokia needs to make its year end quota somehow.

 

[Nr123*123]

Where are all those people who lambasted Nokia for "taking advantage of Apple because Nokia is irrelevant "?

 

[JeffyTheQuik]

Why innovate when you can just steal? Bad apple

Good artists create.
Great artists steal.
-Steve Jobs, quoting someone else...

I guess this is paying Microsoft back after the cash infusion they got back in the 90's.

 

[Nr123*123]

Nokia needs to make its year end quota somehow.

Yep, by claiming money that's rightly theirs.

 

[StevieD100]

Wow... Apple's paying the billions left and right.

If they continue this way they'll be bankrupt pretty soon.

Isn't that $2B coming off the amount of tax they pay Uncle Sam?
If so then the US Taxpayer is the ultimate loser here?
IANAL etc

 

[kemal]

So this $2BnUS is the FRAND level payment for the technology used in the batch of devices covered. Maybe even a little less to get Nokia tech back in the A-Stores. Best Frienemies Forever.

 

[Juicy Box]

They should pay them in pennies. That would be funny.

 

[Rettun1]

Wow... Apple's paying the billions left and right.

If they continue this way they'll be bankrupt pretty soon.

Lulz yea rite?

Even if they had to pay a settlement like this every year, their current cash hoard allows them to do it for 128 years.

“pretty soon”

 

[cfedu]

Does this mean that apple is a bigger thief than Samsung since Samsung only had to pay 1 billion for stealing from apple?

 

[HarryKeogh]

Wow... Apple's paying the billions left and right.

If they continue this way they'll be bankrupt pretty soon.

Analysts say that at this rate, Apple will be broke just ten years after the earth crashes into the sun.


(Norm Macdonald forever.)

 

[Applebot1]

Interesting as it looks on the outside Apple blatantly ripped off Nokia patents. Amazing how many lawsuits Apple are involved. Sometimes it makes you question exactly what Apple have invented.

 

[X--X]

Even if they had to pay a settlement like this every year, their current cash hoard allows them to do it for 128 years.

Analysts say that at this rate, Apple will be broke just ten years after the earth crashes into the sun.

Let me help you.

 

[OldSchoolMacGuy]

Does this mean that apple is a bigger thief than Samsung since Samsung only had to pay 1 billion for stealing from apple?

Means that Apple made far far more money off their infringing devices than Samsung did. Had Apple only sold say 1 million iPhones, they'd only have had a payment of around $10k.

 

[dspdoc]

When I read things like this, lawsuit after lawsuit, it really does make me question my loyalty to Apple. Can anyone who really knows what's going on with all of these continual lawsuits enlighten me about what is really taking place? Hoping someone can make me feel better about being such an Apple loyalist.

 

[eldervovichka]

Wasn't this the law suite, where Apple was paying for the royalties, but stopped because Nokia was over charging. Apple said we will pay if you charge fairly. The settlement is just the back payments as they reached the agreements on the new fees going forward. They really did not rip Nokia off, if I am remembering it correctly.

 

[pat500000]

Jerry mcguire 2
[doublepost=1501257317][/doublepost]

They should pay them in pennies. That would be funny.

Itune cards.

 

[BorderingOn]

Jerry mcguire 2
[doublepost=1501257317][/doublepost]
Itune cards.

I believe they are currently offering Beats headphones.

 

[Vanilla35]

Wasn't this the law suite, where Apple was paying for the royalties, but stopped because Nokia was over charging. Apple said we will pay if you charge fairly. The settlement is just the back payments as they reached the agreements on the new fees going forward. They really did not rip Nokia off, if I am remembering it correctly.

That's Qualcomm. That one has yet to be settled

 

[ronntaylor]

Wasn't this the law suite, where Apple was paying for the royalties, but stopped because Nokia was over charging. Apple said we will pay if you charge fairly. The settlement is just the back payments as they reached the agreements on the new fees going forward. They really did not rip Nokia off, if I am remembering it correctly.

Yep. Similar to what's currently happening with Qualcomm.

 

[WWPD]

When I read things like this, lawsuit after lawsuit, it really does make me question my loyalty to Apple. Can anyone who really knows what's going on with all of these continual lawsuits enlighten me about what is really taking place? Hoping someone can make me feel better about being such an Apple loyalist.

If you're basing your loyalty to a tech company on ethics you may as well not use any technology at all, my loyalty is based purely on my preference of their operating systems and ecosystem compared to the competitors.

 

[mib1800]

Wasn't this the law suite, where Apple was paying for the royalties, but stopped because Nokia was over charging. Apple said we will pay if you charge fairly. The settlement is just the back payments as they reached the agreements on the new fees going forward. They really did not rip Nokia off, if I am remembering it correctly.

Apple is just a hypocrite cry baby complaining others overcharging when apple is only paying pennies for using those patents. Remember when apple demanded ridiculous sum of $35 to use its shameful "rectangular" patent.

 

[TechZeke]

When I read things like this, lawsuit after lawsuit, it really does make me question my loyalty to Apple. Can anyone who really knows what's going on with all of these continual lawsuits enlighten me about what is really taking place? Hoping someone can make me feel better about being such an Apple loyalist.

To me it's really a mess all-around. It would drive me nuts keeping up with all the patents, royalties, and licensing.