Nokia and Apple Sign New Patent Agreement

IAS Prelims 2023

Nokia has settled its legal battle with Apple and signed a new patent licence agreement and  business deal.

A previous patent licence 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 ($900 million) from €950 million previously. In its latest quarterly report released in April, Nokia stopped giving an annual run-rate forecast altogether.

Under the new business agreement, Nokia will provide network products and services to Apple while Apple will resume carrying Nokia’s digital health products in its retail and online stores. The firms will also look into further collaboration in digital health.

Once the world’s dominant cellphone maker, Nokia sold its handset business to Microsoft in 2014 to focus on its network business and large portfolio of mobile-device patents.