Nokia Uses Lawsuit To Make Apple Its Friend

Apple has settled a patent dispute with Finnish telecom equipment maker Nokia and agreed to buy more of its network products and services. The deal means Nokia will get bigger royalties from Apple for using its mobile phone patents, helping offset the impact of waning demand for its mobile network hardware. Nokia's shares were up by seven percent following the announcement. WSJ puts things into perspective: Nokia's deal with Apple follows a highly unusual playbook: using a lawsuit to win business from your adversary (could be paywalled). When the first iPhone was unveiled a decade ago, Apple became a major competitor to the Finnish group, which was then the world's leading mobile-phone maker. As Nokia's business dwindled, the companies became legal antagonists. Now they are set to become business partners. The settlement announced Tuesday involves Apple paying Nokia a lump sum plus royalties for each device it sells using Nokia's technology. This is broadly the same kind of agreement the two sides reached in 2011 following a two-year lawsuit. The previous deal expired last year, which is why both sides launched fresh suits in December. In the aftermath of the lawsuit last year, Apple had pulled all Withings products from its stores. As part of the settlement, Apple said it will reverse that move.

Lawyers

[monkeyxpress]

This is straight out of the corporate lawyer playbook on dispute 'resolution':

1. 1. Struggling CEO rings lawyers, asks what can be done about competitors.
2. 2. Lawyers look into it and tell CEO 'no problem, you've got a great case here, you'll totally destroy these guys'.
3. 3. 2-5 years of drawn out legal squabbling ensues.
4. 4. CEO gets frustrated with process and asks lawyers what is going on.
5. 5. Lawyers advise CEO 'this is more complex than we thought, I think it would be best for you to settle'.
6. 6. Business people meet and come to a pragmatic settlement.

Repeat every 3-5 years, or as your client will allow, until golden pension pot achieved.

Re:

[Shatrat]

Nokia isn't struggling. Apple isn't a competitor. The issue took 6 months to resolve. Nokia got what they were asking for, there wasn't much settling done here. Apple was trying to use their size to squeeze Nokia, Qualcomm and Blackberry on license costs, and the smaller companies didn't blink.

Political Marraige

[nitehawk214]

If it works for kings and queens, why not the new corporate nobility?

Re:

[ausekilis]

Rajeev Suri [nokia.com] and Tim Cook [wikipedia.org] wouldn't exactly make the cutest couple. To say nothing of either being the other's type.

Re: Withings

[Brockmire]

I know this is /., but for fuck sakes, it's in the last paragraph of tfs.