May 23, 2017 - Technology

Apple to make payments to Nokia in patent settlement


Eric Risberg / AP

Apple and Nokia announced late Monday that they have settled their patent dispute. While the terms of the deal were not fully disclosed, the companies said that Apple will make both an up-front and ongoing payments to Nokia and will cooperate in some areas.

Under a business collaboration agreement, Nokia will be providing certain network infrastructure product and services to Apple. Apple will resume carrying Nokia digital health products (formerly under the Withings brand) in Apple retail and online stores, and Apple and Nokia are exploring future collaboration in digital health initiatives. Regular summits between top Nokia and Apple executives will ensure that the relationship works effectively and to the benefit of both parties and their customers.

What it means: The deal gives cash to Nokia and removes one of Apple's legal headaches. It still has a major and escalating legal battle with Qualcomm. That dispute is thornier because Qualcomm is a significant chip supplier to Apple, in addition to a key patent holder.

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