Apple will now pay Nokia a royalty payment for each iPhone sold.
Following the settlement, Nokia confirmed all patent litigation between the two companies has been withdrawn, as well as the complaints to the US ITC.
Nokia nor Apple detailed the financials of the deal, but most industry specialists say the royalty payments will end up being 1.5 percent of the iPhone's $600 average selling price. At an average of 18 million iPhones being sold each quarter, payments to Nokia will be over $640 million per year.
However, because Apple brought multiple patent complaints against Nokia, as well, the royalty payments could be much lower to take that into account.
Concludes Nokia CEO Stephen Elop:
We are very pleased to have Apple join the growing number of Nokia licensees. This settlement demonstrates Nokia’s industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market.
Written by: Andre Yoskowitz @ 14 Jun 2011 11:53
