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Apple Agrees To Pay Licensing Fees To Nokia 205

Posted by CmdrTaco
from the money-makes-it-better dept.
dkd903 writes "After almost two years of litigation of Nokia and Apple suing and counter-suing each other, the patent war between the two companies has come to an end. The winner of this settlement is, however, Nokia. As a part of the settlement, Apple has agreed to become a licensee of Nokia's patents. As a part of the licensing agreement, Apple has agreed to give Nokia a one-time payment and ongoing royalties. The exact terms of the agreement have not been disclosed."
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Apple Agrees To Pay Licensing Fees To Nokia

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  • wait a sec (Score:4, Funny)

    by StripedCow (776465) on Tuesday June 14, 2011 @08:54AM (#36434494)

    I thought Apple was the company doing all the innovation.

    • ...and let me first say, I don't like Apple, don't like their snobbish, and inferior (imho) interfaces, their lock-in, and their outrageous prices.

      However...

      Apple, though I don't agree with how they do it, are able to bring together X, Y, and Z in a one of the most fascinatingly memetic way that touches something in a global manner. They are not innovators, because they don't own X, Y, or likely Z either. They design in such a way as to make people say, "What an innovation!" Yet, they are looking at the s

      • by tyrione (134248)

        ...and let me first say, I don't like Apple, don't like their snobbish, and inferior (imho) interfaces, their lock-in, and their outrageous prices.

        However...

        Apple, though I don't agree with how they do it, are able to bring together X, Y, and Z in a one of the most fascinatingly memetic way that touches something in a global manner. They are not innovators, because they don't own X, Y, or likely Z either. They design in such a way as to make people say, "What an innovation!" Yet, they are looking at the same X, Y, and Z as before. Mozart didn't invent musical instruments, he simply mastered their use and composition.

        But there is a price. Mozart didn't get free pianos or violins simply because he knew how to use them. We shouldn't assume that because Apple uses a technology better that they invented or even improved it. And, in their defense, maybe they fell into the same fallacy of "I use it best, I should therefore not be bound to pay or give others credit." Unfortunately, this is much like those of us (and I do mean myself in that "us") who love FOSS and bristle that we have to actually "pay" for code sometimes.

        Two paragraphs of back handed bull shit. Bravo! Now get back to the end of the line.

  • Why isn't the details of this transaction public information, it completely destroys both company's credibility to not immediately disclose the financial costs in this agreement.
    • by drinkypoo (153816)

      Perhaps that is why. Kept up with who's calling the shots at Nokia lately?

  • I had to look it up, it's hard to keep track of who's starting the wars and who's responding. Nokia sued [engadget.com] and sued again [betanews.com]. Apple counter-sued in the middle there.

    • I bet Lawyers from both sides are buying each other drinks today. ;)
    • It sounds like a schoolyard grudge:

      Here is a brief history of the patent lawsuits between Nokia and Apple.

      - In October 2009, Nokia started off the patent war against Apple with a lawsuit claiming that Apple’s iPhone infringes on 10 Nokia patents related to GSM, UMTS and Wi-Fi.

      -In December 2009, Apple counter sued Nokia claiming that Nokia infringes on 13 patents owned by Apple.

      -Almost two weeks after Apple countersued them, Nokia filed a complaint against Apple in the International Trade Commission. The complaint claims that virtually all of Apple’s devices infringe on one of seven patents owned by Nokia that covers the UI, camera, antenna and power management.

      -A few days (January 2010) after the complaint to the ITC, Nokia again went to the ITC and asked that they ban the import of all Apple products – from MacBooks to iPods.

      -Two weeks after Nokia asked the ITC to ban all Apple devices, Apple responded in the same vein by asking the ITC to ban import of Nokia devices to the US.

      -In May 2010, Nokia again sued Apple saying that the iPhone 3G infringes on five Nokia patents. At this point, Nokia is accusing Apple of infringing on 22 patents and Apple is accusing Nokia of infringing 13 Apple patents.

      -In December 2010, Nokia again sues Apple in the UK, Germany and Netherlands claiming that the iPad, iPhone and iPod Touch infringes on 13 Nokia patents which cover issues such as UI, antenna design, messaging etc.

      -In March 2011, Nokia again returned to the International Trade Commission to complain against Apple and added seven more patents to the list that they are accusing Apple of infringing. The seven new patents that Nokia is accusing Apple of infringing are related to technologies about multitasking, bluetooth, data synchronization etc.

      -Finally in June 2011 (today), Apple has succumbed and has agreed to pay Nokia to license the Nokia patents.

      • Fine summary, except that you leave one detail out: Apple always agreed to pay Nokia the same license fees that other phone makers are paying. Apple just disagreed with having to pay more, and allowing Nokia to use iPhone user interface patents on top of that.

        From what is publicly known, nobody can say whether this is a win for Nokia, or for Apple, or a compromise. Apple was willing to pay $X + no patents, Nokia wanted $Y + patents, and now Apple is paying $Z + some patents but not the ones Nokia asked f
        • by mjwx (966435)

          Fine summary, except that you leave one detail out: Apple always agreed to pay Nokia the same license fees that other phone makers are paying.

          Fine excuse, except you leave out one detail. Apple wanted to use patents in Nokia's portfolio that were not covered under the RAND license Apple was paying.

          The defending parties only make out of court deals when they know they are wrong and don't want to run the risk of paying the other sides legal fees. Apple figured out this couldn't be obfuscated in court any longer. Apple has more then enough money to fight this, so if they had a chance of wining, why wouldn't they?

  • I'm sure part of the agreement was to gang up and start slapping Google around a bit more.
    So, that's Apple and Nokia together (and through Nokia now, Microsoft too).

  • by manonthemoon (537690) on Tuesday June 14, 2011 @11:06AM (#36436194) Homepage

    The most important info was left out. The reason this all played out was that Nokia was unwilling to license to Apple on the same RAND terms that they had committed to, and used with everyone else. They wanted access to specific 'touch' patents held by Apple in addition to the usual monetary payments that Apple had always expected to pay.

    We now know Apple is paying to access Nokia's patents, but:

    Did Apple give access to their iPhone-related patent portfolio in return?
    Did Apple pay a premium over RAND terms?
    Did Nokia no longer need access to Apple's patents due to indemnity from Microsoft since they are moving to WP7?

    • by Missing.Matter (1845576) on Tuesday June 14, 2011 @11:26AM (#36436554)

      According to Apple:

      "Apple and Nokia have agreed to drop all of our current lawsuits and enter into a license covering some of each other’s patents, but not the majority of the innovation that makes the iPhone unique"

      So it seems Nokia has access to some of that portfolio, although we'll probably never know exactly what

      Source: http://www.nytimes.com/2011/06/15/technology/15nokia.html?_r=1 [nytimes.com]

    • I'm not even sure if most/any of patents that Apple is suing over are relevant now that Nokia has decided to use Windows Phone 7 instead of their own work that's been done on Maemo, etc. If that's the case, Apple would have to go after Microsoft too, and any damages caused to Apple by sales of Maemo devices would be laughable given the low sales figures. Apple probably got the same price as everyone else in the end and had to give up some of their own technology for it, but I don't think they care all that
  • Remember that European patent law apparently isn't any more enlightened. Nokia was able to sue Apple because they have patents covering GSM, UMTS, Wi-Fi, and Bluetooth (or some aspects thereof)?

    • by JAlexoi (1085785)
      What's wrong with hardware patents? That was the original area of impact of patents, not what they can cover today...
  • See The Guardian (Great Britain):

    "Apple to pay Nokia big settlement plus royalties in patent dispute
    Tuesday 14 June 2011 18.20 BST

    The Finnish phone-maker Nokia could receive a one-off payment of more than €800m (£700m) from Apple and receive further royalties of €8 per iPhone sold in future, after winning a settlement in a long-running patents dispute.

    Although terms of the settlement were not disclosed, previous patent licensing deals in the phone industry have been worth up to 5% of the pri

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