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Nokia, Apple settle litigation; sign licensing agreement

Nokia and Apple have settled all litigation related to their intellectual property dispute, and inked a multi-year patent license.
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 the two companies will be exploring future collaboration in digital health initiatives.
While details of the agreement remain confidential, Nokia will receive an up-front cash payment from Apple, with additional revenues during the term of the agreement. The value of the agreement will be reflected partially as patent licensing net sales in Nokia Technologies and partially as net sales in other Nokia business groups.
Nokia will follow its existing practices for disclosing patent licensing revenue in its quarterly announcements and expects that revenues for the agreement will start to be recognized in the second quarter of 2017, including an element of non-recurring catch-up revenue.
Due to the up-front cash payment from Apple, Nokia intends to provide a comprehensive update of its capital structure optimization program in conjunction with its third quarter 2017 results.
[Image courtesy: Apple]

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