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

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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
 
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kemal

macrumors 68000
Dec 21, 2001
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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.
 

Applebot1

macrumors 6502a
Jan 4, 2014
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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.
 

anaudiopro

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Mar 7, 2017
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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.
 
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eldervovichka

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Jul 6, 2008
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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.
 
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Vanilla35

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Apr 11, 2013
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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

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Jan 16, 2004
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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.
 
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WWPD

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Aug 21, 2015
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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

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Sep 16, 2012
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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

macrumors 68020
Jul 29, 2012
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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.
 
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