In related news, Nokia and Apple have announced that each respective company has settled with the other for an undisclosed amount relating to the previous patent litigation against each other which began in 2009 relating to payment and royalty claims on wireless technology. In the settlement, Nokia will be receiving a lump sum plus ongoing royalties from the licensing of select wireless patents by Apple. The companies also announced that the respective complaints filed against each other via the International Trade Commission have also been dropped, effectively settling the issue once and for all.
With Nokia coming out the apparent victor in the case, it follows the ITCâ€™s decision to side with Nokia in April regarding the licensing and royalty issues while Apple seemingly attempted to end run around valid patents by not paying licensing fees. As Nokia owns many patents related to the foundation of the GSM standard, it is nearly impossible to build a GSM phone without paying a royalty to the Finnish manufacturer.
Because of the favorable outcome of the case, Nokia is now claiming that the company will break even on earnings for the quarter, correcting its previous forecasted loss and profit warning issued two weeks ago to investors.